I am an entrepreneur and I am planning for the future when we sell our business. Does the capital gains percentage vary depending on the size of the capital gains?
2007-11-12 04:23:28 · 2 answers · asked by michaeldsimmons 1 in Business & Finance ➔ Taxes ➔ United States
Depends upon how long the asset was held. If for one year or less, it's taxed at your margainal rate so the rate will depend upon total income. If held for over one year it's taxed at the long term CG rate which is normally 15%. However if your marginal rate is already 15% or less the rate drops to 5% regardless of the size of the gain.
2007-11-12 04:53:34 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
If you are wildly successful, don't discount the possibility of owing AMT.
While the long term capital gains rate is 15% (and would be honored by the AMT form), a huge spike in income can push you into AMT and the rest of your income could be taxed at 28%.
2007-11-13 16:52:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋