Tax question | Imamother

amother

Wed, Apr 10 2024, 6:28 pm

If my long term capital gains are 200k married filing jointly, do I pay 15% on entire amount or only on the amount that exceeds the lowest tax bracket (I think that is 0% up to 90k or something like that)?

amother

Cantaloupe

Wed, Apr 10 2024, 6:31 pm

If your long-term capital gains are 200k, why are you doing your taxes by hand? At the very least, use some software like TurboTax.

amother

Wed, Apr 10 2024, 6:40 pm

amother Cantaloupe wrote:

If your long-term capital gains are 200k, why are you doing your taxes by hand? At the very least, use some software like TurboTax.

I’m not I have an accountant but he’s not going to spend time explaining things and I like to know beforehand

(This is for 2024 not 2023)

amother

Aquamarine

Wed, Apr 10 2024, 6:49 pm

amother OP wrote:

tax rates are usually marginal so it should be 0% on up to 90% and then 15% on the income after that... but I don't know your tax bracket so these numbers can be wrong. Also depends on whether your capital gains are long term or short term. honestly if you're paying an accountant, he should be able to answer a quick question emailed to him.

amother

Wed, Apr 10 2024, 6:56 pm

amother Aquamarine wrote:

For whatever reason I don’t feel comfortable emailing him but I appreciate you taking the time to respond.

amother

Fuchsia

Wed, Apr 10 2024, 6:56 pm

amother Aquamarine wrote:

Long term capital gains are taxed at a flat rate of either 15 or 20 percent.
This depends on your effective tax rate.

theoneandonly

Wed, Apr 10 2024, 7:31 pm

amother Fuchsia wrote:

Long term capital gains are taxed at a flat rate of either 15 or 20 percent.
This depends on your effective tax rate.

Nope it's graduated, either 0, 15, or 20 percent, and has nothing to do with your effective tax rate.
Op, you can Google the capital gains tax rate table, but it's 0 percent up to roughly 90k, then 15 percent from 90 to roughly 500k, then 20 percent above 500k.
If your total income is above 250k then you will need to pay an additional 3.8 percent net investment income tax on top of the capital gains tax.

amother

Wed, Apr 10 2024, 7:35 pm

theoneandonly wrote:

So the entire amount is taxed at 15%?

Also is the income of 250 inclusive of the long term capital gains or is that regular income aside from the long term capital gains?

theoneandonly

Wed, Apr 10 2024, 7:37 pm

amother OP wrote:

So the entire amount is taxed at 15%?

Also is the income of 250 inclusive of the long term capital gains or is that regular income aside from the long term capital gains?

No, you were correct initially, the amount up to 90k is not taxed, and above that it's taxed at 15 percent.
Total income of 250k would be inclusive of the capital gain.