Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
LTCG 20% with proposed GOP TCJA
Posted by: falsefaith, December 5, 2017 12:40PM
Is the top long term capital gains rate of 20% tied to the highest income tax bracket (wording) or called out to a specific dollar amount that happened to correspond to the current highest 39.6% tax bracket when the law was written?

The reason I ask is that w/both GOP proposals in the House and Senate the top income tax rate for married filing jointly is $1,000,000. Would this new threshold if approved also modify the threshold of when the 20% long term capital gains rate kicks in or would it be unaffected?

Thanks!
Pete

Re: LTCG 20% with proposed GOP TCJA
Posted by: Kaye Thomas, December 24, 2017 03:38AM
The rate switches to 20% at $479,000 (half that for MFS), which is not exactly the same as where the 39.6% bracket would have kicked in, but in the same neighborhood.

Kaye Thomas
Fairmark.com



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