Q:

How many capital gains rates are there for assets held for more than a year?

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Quick Answer

Prior to 2013, there were only two capital-gains tax rates for assets held more than one year; however, now there are at least four, according to Forbes magazine. If a taxpayer is in the 10 to 15 percent federal income-tax bracket, she is eligible for the 0 percent rate.

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How many capital gains rates are there for assets held for more than a year?
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Full Answer

The tax rate on the majority of net capital gain is no higher than 15 percent for most taxpayers, according to the IRS. A 20 percent rate applies to tax years 2013 and later for taxpayers whose taxable income exceeds the threshold for the 39.6 percent ordinary tax rate. In addition, the taxable part of a gain from selling section 1202-qualified small-business stock and net capital gains from selling collectibles are both taxed at a maximum 28 percent rate. Finally, the portion of any unrecaptured section-1250 capital gain from selling section-1250 real property is taxed at a maximum 25 percent rate.

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