Do I pay capital gains 25% or my tax bracket?

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Do I pay capital gains 25% or my tax bracket?

If I make 30,000 and it is short term (as a trader) do I pay 25% capital gains or is that just the LID of the tax rate, and I would actually pay 15% since that would be the tax bracket I would be in.

2007-07-08 12:24:14 · 3 answers · asked by easeofdisease 1 in Business & Finance ➔ Taxes ➔ United States

3 answers

Short term capital gains are taxed at the ordinary income rate, so are taxed at whatever your tax bracket is, in your case 15%.

2007-07-08 14:48:01 · answer #1 · answered by Judy 7 · 1⤊ 0⤋

If you are day tradeing you have to pay sort term capital gains. Capital gains is not the same as tax on you income.

2007-07-09 01:31:33 · answer #2 · answered by K M 4 · 0⤊ 0⤋

It would be 15%..

2007-07-08 19:28:35 · answer #3 · answered by ? 2 · 0⤊ 1⤋