![]() This means that a lot more people would be included in the 20% long-term capital gains rate under the new plan. However, notice that the income threshold for Trump's highest (33%) bracket is significantly lower than the highest tax bracket currently. For the majority of taxpayers, long-term capital gains taxes would either stay the same or decrease. In addition, since Trump and most of his Republican allies have made it clear that they intend to repeal the Affordable Care Act, the 3.8% investment income tax on high-earners would cease to exist.Ī couple of things to notice. Many people who have enjoyed the more favorable head-of-household tax brackets would be classified as "single" and could see their long-term capital gains tax rate increase. Trump's simplified and consolidated tax brackets, and their corresponding long-term capital gains tax rates are:ĭata source: Notice that there is no more "head of household" or status, nor is there a "marriage penalty" - that is, the single tax brackets are now exactly half of those for married joint filers. With a Republican-controlled Congress whose tax plan is quite similar, he has a strong chance of making these changes in 2017. ![]() President-elect Donald Trump has proposed that we keep the current long-term capital gains tax rates of 0%, 15%, and 20% but proposes that we reduce the number of tax brackets from seven to three. In addition, high-income taxpayers are assessed an additional 3.8% tax on certain investment income, as part of the Affordable Care Act. Once you know your marginal tax rate for your income level and tax filing status, you can match it to your long-term capital gains tax rate in this table: ![]() Your long-term capital gains tax rate depends on your marginal tax rate, or tax bracket, and you can find a full guide to the 2017 brackets here. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |