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Old 11-16-2014, 10:59 AM
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Capital Gains vs. Regular Income

Are capital gains taxed differently from regular income?

For example, let's say my salary is $50,000 and I have a long term capital gain of $100,000 for 2014 and I live in California.

My $50,000 will be taxed separately from my LT capital gain ($100,000) for federal and state right?

In other words, they are not going to be combined as $150,000 as a whole right?

Thanks



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Old 11-16-2014, 12:13 PM
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actually they are combined you may try to fill in sch D and ualified div adcapital gain wokshhet by following step by step instructions;aslongas your marginal tax rate is 39.6% then your ltcg rate’d be ashighas 20%



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Old 11-16-2014, 11:01 PM
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So there are three tax marginal rates tables that are applicable to my case

1) Federal
2) State
3) Long term capital gain tax rates

So if everything is combined into $150,000. How are these amounts be taxed? Will #3 above be used for my ltcg of $100,000?

Thanks



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Old 11-17-2014, 11:25 AM
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Quote:
Originally Posted by hoangtu69 View Post
So there are three tax marginal rates tables that are applicable to my case

1) Federal
2) State
3) Long term capital gain tax rates

So if everything is combined into $150,000. How are these amounts be taxed? Will #3 above be used for my ltcg of $100,000?

Thanks
#1 and #3, as I said are combined as one rate in the qual div and cap gain worksheet and your state tax rate will be applied in separation. you need to contact DOR of your state for tax rate on your ltcg for more info in detail.



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