CAPITAL GAINS TAX STAYS THE SAME

In 2012, the tax rate on qualified dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets. The following tax rates will increase after 2012: DIVIDENDS will be taxed at the taxpayer's ordinary income tax rate, regardless of his or her tax bracket; the LONG-TERM CAPITAL GAINS tax rate will be 20%.

 

Capital Gains Taxation in the United States from 2003 forward
2003–2012 2013–
  2003–2007 2008–2012 2013–
Ordinary Income Tax Rate Short-term Capital Gains
Tax Rate
Long-term Capital Gains
Tax Rate
Short-term Capital Gains
Tax Rate
Long-term Capital Gains
Tax Rate
Ordinary Income Tax Rate Short-term Capital Gains
Tax Rate
Long-term Capital Gains
Tax Rate
10% 10% 5% 10% 0% 15% 15% 15%
15% 15% 5% 15% 0%
25% 25% 15% 25% 15% 28% 28% 20%
28% 28% 15% 28% 15% 31% 31% 20%
33% 33% 15% 33% 15% 36% 36% 20%
35% 35% 15% 35% 15% 39.6% 39.6% 20%

 

  

If you have any questions on Tax Planning, please feel free to give us a call.

 

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