New Capital Gains Tax Rates May Affect The Bottom Line When You Sell

Selling your business is a complex process, and the capital gains tax rate you will pay may have increased if you sell starting in 2015. The profits you earn from the sale of your capital assets, such as a business, investments or property, may now be more than in previous years.

Short-term gains on investments (those held for less than one year) are added into ordinary income.

Long-term gains (investments held for more than one year) receive special tax treatment. For 2015, the tax rate applied to long-term capital gains will depend on the tax bracket you fall into:

  • Tax returns in the 10 and 15 percent tax brackets won’t pay any capital gains taxes.
  • Tax returns in the 25, 28, 33 and 35 percent tax brackets will pay 15 percent in capital gains taxes.
  • Tax returns in the 39.6 percent tax bracket will pay 20 percent in capital gains taxes.
  • The new Net Investment income tax is 3.8 percent on all investments income including capital gains. It’s only triggered on tax returns that report a modified adjusted gross income of $250,000 (if married and filing jointly), $125,000 (if married and filing separately) and $200,000 (if filing as single or head of household).

Now is the time to put a strategy in place – call Cadeau & Company for advice you can rely on today!