![]() Long-term capital gains are gains you have on investments you've held for longer than one year, and they're usually taxed at a lower rate than short-term gains and other ordinary income. These rates range from 10% to 37% in 2022 and depend on your taxable income. These gains are taxed at a rate equal to the rate you're taxed on your ordinary income such as wages and taxable interest income. Short-term capital gains are gains on investments you've held for one year or less. Short-term and long-term capital gains are typically taxed at different rates. What are short-term and long-term capital gains and losses? After using $3,000 of the excess loss to offset other income, the rest can be carried forward to the following year to offset gains and other income again. If you have more losses than gains, you may be able to use up to $3,000 of the excess loss to offset ordinary income on your taxes in the same year. You can possibly use that capital loss to reduce your capital gains in the same year. If you sell an investment for less than your cost, you have a capital loss. What are the tax consequences of loses from your investments?
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