All of this is not enough for the "DUD"LEY??? Its' already very complicated by your LORD and MASTERS in the GOVT.
2022 Long-Term Capital Gains Tax Rates
| Tax filing status | 0% rate | 15% rate | 20% rate |
|---|
| Single | Taxable income of up to $41,675 | $41,676 to $459,750 | Over $459,750 |
| Married filing jointly | Taxable income of up to $83,350 | $83,351 to $517,200 | Over $517,200 |
| Married filing separately | Taxable income of up to $41,675 | $41,676 to $459,750 | Over $459,750 |
| Head of household | Taxable income of up to $55,800 | $55,801 to $488,500 | Over $488,500 |
2023 Long-Term Capital Gains Tax Rates
| Tax filing status | 0% rate | 15% rate | 20% rate |
|---|
| Single | Taxable income of up to $44,625 | $44,625 to $492,300 | Over $492,300 |
| Married filing jointly | Taxable income of up to $89,250 | $89,250 to $553,850 | Over $553,850 |
| Married filing separately | Taxable income of up to $44,625 | $44,625 to $276,900 | Over $276,900 |
| Head of household | Taxable income of up to $59,750 | $59,750 to $523,050 | Over $523,050 |
Short-Term Capital Gains Taxes
When you own an asset or investment for one year or less before you sell it for a profit, that’s considered a short-term capital gain. In the U.S., short-term capital gains are taxed as ordinary income. That means you could pay up to 37% income tax, depending on your
federal income tax bracket.
2022 Federal Income Tax Brackets
| Tax rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|
| 10% | Taxable income of $0 to $10,275 | Taxable income of $0 to $20,550 | Taxable income of $0 to $10,275 | Taxable income of $0 to $14,650 |
| 12% | $10,276 to $41,775 | $20,551 to $83,550 | $10,276 to $41,775 | $14,651 to $55,900 |
| 22% | $41,776 to $89,075 | $83,551 to $178,150 | $41,776 to $89,075 | $55,901 to $89,050 |
| 24% | $85,076 to $170,050 | $178,151 to $340,100 | $89,076 to $170,050 | $89,051 to $170,050 |
| 32% | $170,051 to $215,950 | $340,001 to $431,900 | $170,051 to $215,950 | $170,051 to $215,950 |
| 35% | $215,951 to $539,900 | $431,901 to $647,850 | $215,951 to $323,925 | $215,951 to $539,900 |
| 37% | $539,901 or more | $647,851 or more | $323,926 or more | $539,501 or more |
2023 Federal Income Tax Brackets
| Tax rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|
| 10% | Taxable income of $0 to $10,275 | Taxable income of $0 to $20,550 | Taxable income of $0 to $10,275 | Taxable income of $0 to $14,650 |
| 12% | Over $10,275 but not over $41,775 | Over $20,550 but not over $83,550 | Over $10,275 but not over $41,775 | Over $14,650 but not over $55,900 |
| 22% | Over $41,775 but not over $89,075 | Over $83,550 but not over $178,150 | Over $41,775 but not over $89,075 | Over $55,900 but not over $89,050 |
| 24% | Over $89,075 but not over $170,050 | Over $178,150 but not over $340,100 | Over $89,075 but not over $170,050 | Over $89,050 but not over $170,050 |
| 32% | Over $170,050 but not over $215,950 | Over $340,100 but not over $431,900 | Over $170,050 but not over $215,950 | Over $170,050 but not over $215,950 |
| 35% | Over $215,950 but not over $539,900 | Over $431,900 but not over $647,850 | Over $215,950 but not over $323,925 | Over $215,950 but not over $539,900 |
| 37% | Over $539,900 | Over $647,850 | Over $323,925 | Over $539,900 |
What Is a Capital Gain?
A capital gain happens when you sell or exchange a capital asset for a higher price than its basis. The “basis” is what you paid for the asset, plus commissions and the cost of improvements, minus depreciation.
There is no capital gain until you sell an asset. Once you’ve sold an asset for a profit, you’re required to claim the profit on your income taxes. Capital gains are not adjusted for inflation.
Here’s how capital gains are calculated:
- Find your basis. Typically, this is what you paid for the asset, including commissions or fees.
- Find your realized amount. This will be what you sold the asset for, less any commissions or fees you paid.
- Subtract the basis from the realized amount. If your sale price was higher than your basis price, it’s a capital gain. If your sale price was less than your basis price, it’s considered a capital loss.
What Are Capital Losses?
Capital losses are when you sell an asset or an investment for less than you paid for it. Capital losses from investments can be used to offset your capital gains on your taxes.
Like gains, capital losses come in short-term and long-term varieties and must first be used to offset capital gains of the same type.
For instance, if you have long-term capital losses, they must first be used to offset any long-term capital gains. Any excess losses after that can be used to offset short-term capital gains. You also may use capital losses to offset up to $3,000 of other income, such as earnings or dividend income. Unused capital losses can be carried forward to future tax years.
How Are Capital Gains Taxes Calculated?
You can calculate capital gains taxes using IRS forms. To calculate and report sales that resulted in capital gains or losses, start with
IRS Form 8949.
Record each sale, and calculate your hold time, basis, and gain or loss. Next, figure your net capital gains using
Schedule D of IRS Form 1040. Then copy the results to your tax return on Form 1040 to figure your overall tax rate.
