What are the current 2007 tax rates on someone in the "highest bracket"?

Question

I'm doing some investment forecasting and I'd like to know what rates I should use for someone in what is described as the "highest tax bracket"?

I need the 3 USA federal rates for ordinary income, capital gains, and cost recovery.

Answer 1

The maximum Federal rate is 35%. Each state that taxes investment income has their own rules so you'd have to consult the appropriate state revenue or tax department website for that.

The maximum long term capital gains rate is 15% in most cases. (There are some unusual cases where they can go higher. The most common is on collectibles but there are other situations as well.)

Short term capital gains are at the taxpayer's marginal rate so that would cap out at 35% as well.

Not sure what you mean by a "cost recovery" tax rate. Been working taxes for nearly 40 years and have not heard that one. If you're refering to depreciation recapture, that's taxed as ordinary income in most cases.