We’ve received calls asking to explain capital gains taxes so we thought this week’s article might be of interest.
It tells us “There are two categories of capital gains: short term (assets held for a year or less) and long term (assets held for longer than one year). The day you acquire the asset isn’t included in your holding period, but the day you sell it is.”
“Any net gain resulting from the sale of an asset with a short-term holding period will be added to your gross income and taxed as ordinary income at rates between 10% and 37%. Net gains considered long term are usually taxed at 15% or 20% depending on your total taxable income.”
There are other factors to consider when calculating capital gains such as your income level or if you received the asset as a gift or from inheritance.
Call us if you’re thinking about capital gains and their impact on your retirement savings. We could educate you on some options for where to place those funds. We’re always here to help and educate you on successful retirement strategies.