capital gains tax rate simplified

[lrlamon]

Hi everyone,

I wanted to share 2 websites that i found that very very simply answer how much we will actually pay on each of our particular investments.

1) www.taxfoundation.org

look at the chart for jan 1 2008 to dec 31, 2010

use this with this website

2) www.dinkytown.net

go to the 2009 tax rate chart and type in your specific info to give you an idea what your tax rate is, i used my last years tax form and typed in income and itemized deductions. ONce you know your tax rate go back to the first website chart and figure out either your long or short term tax rate and viola. I have shown this to 2 tax guys plus your third reference is the taxfoundations website so there are 3 sources that tell me this is how it will go. This does not include specific state taxes just federal rates on your capital gains.

Hope you all find this as useful as i did.

[tjm1954]

Outstanding info and ouccccchhhhh on my rate. I believe we as a collective group will put a tiny dent in the national debt when this baby launches. Maybe Congress will vote us a reprieve since half of them probably own Dinar and they NEVER pass laws for themselves that help us too with this one exception. Not likely!

[TMC]

Which categorie(s) did you use to apply to the dinar (foreign currency exchange) issues???

[lrlamon]

tmc....if i understand your question correctly. A currency exchange with capital gains on the profits. If i missed something can you please elaborate.

thanks

[lrlamon]

lol same with me. ended up at a 30 percent rate on federal taxes......but better then 35%.

[darprog]

The chart may have been available before on visible. But, not finding the "jan 1 2008 to dec 31, 2010" chart. Mind linking directly to it posting?

Thanks,

D.

[Jeff5588]

Can't find it.

[Matt]

In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income, but the tax rate for individuals is lower on "long-term capital gains," which are gains on assets that had been held for over one year before being sold. The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax). Short-term capital gains are taxed at a higher rate: the ordinary income tax rate. The reduced 15% tax rate on eligible dividends and capital gains, previously scheduled to expire in 2008, has been extended through 2010 as a result of the Tax Increase Prevention and Reconciliation Act signed into law by President Bush on May 17, 2006 (P.L. 109-222). In 2011 these reduced tax rates will "sunset," or revert to the rates in effect before 2003, which were generally 20%.

The IRS allows for individuals to defer capital gains taxes with tax planning strategies such as the structured sale (ensured installment sale), charitable trust (CRT), installment sale, private annuity trust, and a 1031 exchange. The United States is unlike other countries in that its citizens are subject to U.S. tax on their worldwide income no matter where in the world they reside. U.S. citizens therefore find it difficult to take advantage of personal tax havens. Although there are some offshore bank accounts that advertise as tax havens, U.S. law requires reporting of income from those accounts and failure to do so constitutes tax evasion.

[Mongo]

Hi everyone,

I wanted to share 2 websites that i found that very very simply answer how much we will actually pay on each of our particular investments.

1) www.taxfoundation.org

look at the chart for jan 1 2008 to dec 31, 2010

use this with this website

2) www.dinkytown.net

go to the 2009 tax rate chart and type in your specific info to give you an idea what your tax rate is, i used my last years tax form and typed in income and itemized deductions. ONce you know your tax rate go back to the first website chart and figure out either your long or short term tax rate and viola. I have shown this to 2 tax guys plus your third reference is the taxfoundations website so there are 3 sources that tell me this is how it will go. This does not include specific state taxes just federal rates on your capital gains.

Hope you all find this as useful as i did.

CAPITAL GAINS TAX RATE SIMPLIFIED...........................................Which word dosn't go with the rest of them ? Can you guess?

[Matt]

15% for me!! WoHOOO!!!

[lrlamon]

http://www.taxfoundation.org/taxdata/show/2088.html

sorry about that ...here is a direct to the page

[lrlamon]

lol mongo...true......my phrase is an oxymoron

[bribar1]

it's a big chunk

[DaveH]

this should really simplify it...go to the horses A@$, sorry mean mouth for the real answers...

http://www.irs.gov/newsroom/article/0,,id=106799,00.html

I know this talks about 2009 taxes but the law currently runs through end of 2010, unless O hole changes it between now and then..pay attention to #7. it basically means you will pay your current tax rate for short term gains and nothing for long term gains. you will still have to pay state tax, based on the laws of your state

IRS Tax Tip 2010-35

Have you heard of capital gains and losses? If not, you may want to read up on them because they might have an impact on your tax return. The IRS wants you to know these ten facts about gains and losses and how they could affect your tax situation.

1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.

2. When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.

3. You must report all capital gains.

4. You may deduct capital losses only on investment property, not on property held for personal use.

5. Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.

6. If you have long-term gains in excess of your long-term losses, you have a net capital gain to the extent your net long-term capital gain is more than your net short-term capital loss, if any.

7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2009, the maximum capital gains rate for most people is15%. For lower-income individuals, the rate may be 0% on some or all of the net capital gain. Special types of net capital gain can be taxed at 25% or 28%.

8. If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.

9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.

10. Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13of Form 1040.

For more information about reporting capital gains and losses, see the Schedule D instructions, Publication 550, Investment Income and Expenses or Publication 17, Your Federal Income Tax. All forms and publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676

i am not a tax attorney or accountant..read this and make your own decisions on what to do as far as paying tax

Dave

[lumpzim]

My plan is to put 50% of what I cash in, in an investment account (TBD). What ever is left after 4/15/2011 is mine. This way I'll be safe with Uncle Sam and I'll have little to no stress as to what I'm going to owe.

[Papaya]

I need a little help with clarifying the short term capital gains tax rate for 2010. If we sold dinars at a profit in 2010, the short term capital gains rate , no matter what income bracket you are in for 2010, will only be 15% ? Did I get that wrong? Thanks for any help.

[lrlamon]

Hi papaya,

It will be based on your marginal tax bracket. For example i have a marginal tax bracket of 30% but fall into the 28% tax bracket. So for me short term capital gains tax rate will be 30% for me and long term capital gains will be 15%. If your adjusted income is 67000 or less for the year you will only pay 15% on short term or long term based on the info from taxorganization.org. I hope that helps clarify it....and of course please make sure you consult with a tax guy like i did as everyones personal situation is different. These websites will give you an idea what your tax rate will be.... and of course don't forget state taxes....i get stuck paying 5% state as well.

[bobstick]

Just mail it all in to i.r.s. Dictator obama will send back what he wants you to keep. Don't be surprised. He promised you "change."

[mondeogolf]

capital gains 18% in the uk i believe

[whisky runner]

i believe because of the health bill it might bring new taxes with it .... some friend have talked about how irs get new power and the working american get more taxes ... when all this starts don't know .. wait to see the vote today

[inmarc]

This calculator might a little easier to use. Long term capital gains (i.e. anything held over a year) is obviously inputed in the long term capital gains field, short term (i.e. anything held under a year), just add the amount to the regularly taxed income field. The tax year may say 2009 but there is a 2010 in the drop down menu. The result will automatically calculate an approximate estimated taxes on your input. There is a lot of discussion about how the exchange of IQD will be taxed, the safe play is to estimate what it would be at ordinary income rates. If you can get long term capital gains rates so much the better. Here's the link to the calculator.

Of course if you exchange through a Charitable Remainder Trust (CRT) you won't really care what the tax rate is.

[K8GJGB]

well you will have to re-think your taxes now thanks to the new health care bill. It is loaded with new taxes even capitol gains as they will be 47% now. This new bill will be run by the IRS and they will now hire 1700 new agents and the taxes in this bill will knock you off of your feet. Thank you government we live to serve you lol

Edited March 22, 2010 by K8GJGB
additional info

[jmcsh49890]

This is very good information, can't wait to use it.

[djw]

Obama is going to let all the tax cuts expire!

[djw]

I know this a little late for a lot of you, but maybe I can help some that have not bought any Dinar yet!

If you have a Roth IRA setup already and have some cash in it. You can only add $6000 per year. But You can buy $6000(approx 6,000,000 Dinar) every year as I have thru the Roth. The Roth holds the Dinar, when it RVs I instruct the Roth to cash in whenever I want, the cash goes back in the Roth. I have to wait until I am 591/2 to take out tax free. I am 57 now. I have been buying real estate now for years, rent money goes back in to the Roth, when I get enough, I buy another rental , all thru the Roth. Check out company called www.theEntrustGroup.com or search selfdirected Roth IRAs.