Personal Finance & Money Asked by Rahul Desai on January 20, 2021
If both brackets are the same, please let me know. I plan to sell some of my long term stocks and want to make an informed decision.
My understanding of regular income tax is that it includes salary, bonus and RSUs. Capital gains is about assets sold in long/short term. Please correct me if I am wrong.
For the tax brackets, I am referring to this article – https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates
If you are talking about US Federal Income tax you will pay the long term capital gain rate for any stocks you held more than a year. The taxed amount will be the proceeds minus the total cost of purchasing them.
Capital gains are basically gains on any investment asset that you earned a profit from appreciation in value, as opposed to earned income that you received for selling your labor.
Correct answer by JohnFx on January 20, 2021
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