I had a conversation today with a guy who stated because he was 70 years old that he did not have to pay taxes on capital gain, is this true?
2006-12-22 13:47:47 · 4 answers · asked by GODIS 2 in Business & Finance ➔ Taxes ➔ United States
no, you pay capital gains either way..young or old...it depends on how long you held the stock, your annual income and if it is a dividend or not.
2006-12-22 13:52:02 · answer #1 · answered by fade_this_rally 7 · 1⤊ 0⤋
Searching both the 1040 Schedule D, where you report capital gains, and the instructions for that schedule, there is NO REFERENCE to any age or age related deferral or abatement of capital gains taxes. Your friend had better consult a tax professional before he files or he could end up in a world of trouble.
2006-12-22 21:56:31 · answer #2 · answered by Mary T 2 · 1⤊ 0⤋
No that isn't true. Capital gains tax has nothing to do with age.
2006-12-24 20:53:02 · answer #3 · answered by strawberrycrush 4 · 0⤊ 0⤋
No, it does not depend on age. It is simply:
a) Gains on assets held over 1 year are taxed at 15%.
b) Gains on assets held less than 1 year are taxed as ordinary income (depending on your tax bracket).
2006-12-22 21:53:58 · answer #4 · answered by Mitt 2 · 1⤊ 1⤋