Capital Gains Tax

From Investment Wiki

Check with your tax advisor to determine your capital gains taxes before you sell. Capital Gains on assets held for a year or less: If you’re in the 15% tax bracket, you’re capital gains on assets are taxed at your ordinary income tax rate of 15%. If you’re income tax bracket is greater than 15%, you’re capital gains on assets are taxed at your ordinary income tax rate (anywhere from 28% to 39.6%). Capital Gains on assets held for more than a year: If you’re in the 15% tax bracket, you’re capital gains on assets are taxed at a reduced rate of 10%. If you’re income tax bracket is greater than 15%, you’re capital gains on assets are taxed at a reduced tax rate of 20%.

Tip: You can minimize capital gains taxes by using a 1041 exchange at the time of sale.