Capital Gains tax for 2013
Can you verify what the capital gains tax is for 2013. As I understand, if you are under the 15% individual tax bracket there is no tax it is 0.
Also if this is true, does the State I live in, which is California follow the Federal view of Capital gains tax?
Thanks,
Joe Malone
Permalink Submitted by mk foss on Thu, 2013-11-07 19:36
There is a 0% bracket for long-term capital gains that low bracket taxpayers can take advantage of. Qualified dividends also qualify for the 0% bracket if the income is low. Most long-term capital gains for higher income tax payers are taxed at 15% but there is a new 20% bracket that takes effect in 2013 for the highest incomes. Short term capital gains get no special tax rate. High income taxpayers will also contend with a 3.8% net investment income tax in 2013 in mnay cases. There are many variations in the tax on long term capital gains for 2013. California has no special tax rate for capital gains – they’re taxed as ordinary income.