Has the capital gain tax increased since last year?


Quick Answer

As of September 2015, the maximum capital gains tax rate for the current year did not increase from the previous year, as Wolters Kluwer notes. Capital gains tax rates vary for individuals and corporations.

Continue Reading

Full Answer

The Internal Revenue Service lists the capital gains tax rate for each year on its website, which also provides exceptions and special rules that taxpayers can use to determine if capital gains apply to them. Taxpayers experiencing a capital loss in a particular year can carry the loss over and apply it to a future year, but these losses are subject to certain limitations that change each year. Taxpayers must also apply a capital gains tax rate to the cumulative sum of all capital transactions for a particular year, as the Internal Revenue Service explains in "Reporting Gains and Losses." Taxpayers should report the lower of the regular tax and the capital gains tax on an income tax return.

Those paying capital gains taxes must complete either Form 8949 or Schedule D each year, according to the Internal Revenue Service. The Internal Revenue Service defines capital gains as anything taxpayers own and use for personal purposes, pleasure or investment. Any person selling a capital asset for a gain is required to pay the capital gains tax rate for that particular year.

TurboTax notes that the length of asset ownership matters for tax purposes. Items are classified as either short-term or long-term capital gains.

Learn more about Taxes

Related Questions