Capital gains taxes are taxes issued on properties or assets of an individual concerning what pay and invest into a property or asses. You can either sell an investment for more than what you had paid for it, which is considered a capital gain, or you can sell it less than what you paid for it, which in contrast is a capital loss. Your capital gains taxes depend on your holding period, which in turn influences your tax rate. There are two types of holding periods. One is a short term capital gain tax and the other is a long term capital gain tax. A short tem capital gain tax has a holding period of one year or less than that. On the other hand, a long term capital gain tax has a holding period of more than one year.
Long term capital gain taxes on different rates. The holding period begins upon the date you bought the certain investment or asset until the date you sold that particular investment or asset. There are two types of tax rate outcomes for the long term capital gain tax. The first tax rate is 5% for tax payers who are in the general range of 10% and 15% in their tax brackets. The next tax rate is 15%, and this is for the tax payers who are in the general range of 25% to 35% in their tax brackets.
However, long term capital gain taxes are taxed differently when it comes to collectibles. Long term investments in reference to collectibles are taxed at 28%. Collectibles are items such as coins, gems, alcoholic beverages, art, precious metals, rare rugs, stamps and so on forth.
Be sure to remember that long term capital gain taxes are taxed at a much lower rate than your regular income would be taxed at on a regular basis. It all really depends on your stable income for that specified tax year. Sometimes you may end up in a higher tax bracket and sometimes in the lower tax bracket. Therefore, you are liable to end up with different composites of tax incomes, rates and capital gains.
Long term capital gain taxes can be quite confusing. Be sure to call any local financial department before you purchase your next asset or sell an asset. Everything should be done carefully with attentiveness and consistent records of evidence and so on forth.