Capital Gain

Under tax law, a gain realized on the sale of securities, fixed property, or similar assets. If the asset has been held more than one year it is considered long-term gain. Short-term gains are taxed like regular income, so the rate is equal to your federal income tax bracket. Long-term gains are taxed at a lower rate, but still according to your income level.

The breakdown is as follows:

  • People in the 10% and 15% brackets pay 0%.
  • People in the 25%, 28%, 33%, and 35% brackets pay 15%.
  • People in the 39.6% bracket pay 20%.