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Tax Blog

Capital Gains Rates 2019

Stocks and long-term investments are staple of the American economy and retirement strategy. So how are they taxed? This answer can depend on a few answers from the holding account to how long they were owned. We’ll explore a few of the options and rates below.

The first example is to know the rates for 2019, which are based on a progressive tax rate depending on the income. Starting in 2019 there will only be three tax rates for long-term capital gains.

Now in order to qualify for the long-term capital gains rate, note that the investment must have been held for over 365 days. If the investment has not been held that long it will be taxed at the corresponding ordinary income tax rate. Additionally, take note of the new net investment income tax which is taxed at an additional 3.8%. This can be applied to any investments including short-term, long-term, interest, and dividends. The net investment income tax is applied in various ways but typically only on the adjusted gross income of over $200,000. Taxes are a finicky and sometimes difficult pathway to navigate, make sure you have the professionals on your side for all the help. Contact us at the Center for Financial, Legal & Tax Planning, Inc. for all your needs.

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