Net Short term capital gains…
I believe that net short term capital gains are taxed at your ordinary income tax bracket and not taxed at either zero or fifteen percent (long-term capital gains rates). However, when reviewing Schedule D…net capital gains go to line 13 of the 1040 Form. Do all net capital gains go on line 13 whether or not the gains are taxed at ordinary income tax rates or long-term capital gains rates?
Permalink Submitted by Alan Spross on Tue, 2009-12-29 18:44
Yes, all the net gains or losses go on line 13. The actual tax for line 13 and 9b is calculated using the “Capital gains and qualifed dividend worksheet” in the 1040 Sch D instructions.