Capital Gains & Taxes

Are Capital Gains Taxes Going Up?

With the passing of the Infrastructure Investment and Jobs Act, I have received quite a few questions about capital gains and potential changes to the current tax law. 

Capital gains happen when property and/or investments are sold for a profit.  Capital gains are classified as either short or long term.  A gain is considered short term when the investment has been owned for less than 12 months and is taxed at ordinary income tax rates. Currently the maximum is 37% but your rate depends on your annual income. 

A gain is considered long term when the investment is owned for longer than 12 months and is taxed according to thresholds for taxable income at rates of 0%, 15%, and 20%.

How rates may change going forward, as it pertains to the infrastructure act, is yet unknown.  In any environment, navigating capital gains can be tricky so don’t try to go it alone.  Here at Sunnyside Wealth Management, I am staying well informed and ready to share what I know, when I know it!  

A thorough review of your investment portfolio is a best practice when it comes to making decisions about whether or not to take gains in a portfolio.  Schedule a brainstorming session with me today to get clarity around your money matters!

Information in this material is for general information only and not intended as investment, tax or legal advice.  Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.

Email me your questions at laura.skinner@lpl.com or call 620-325-5552.  You can also post your question on my Facebook page:

https://www.facebook.com/sunnysidewealthmanagement