What is the impact on the Capital Gains Tax for as a result of the possible Tax Law Changes in 2013?
There could be some significant changes in the Capital Gains Tax Rate as a result of Fiscal Cliff. Unless there's a congressional deal, the capital gains rate will increase to 20% in January, up from 15% now.
In addition, for those with higher income levels, they'll also incur a 3.8% surtax on capital gains, dividends, royalties and real estate sales due to the Affordable Care Act, which means the effective capital gains rate will hit 23.8% on Jan. 1, 2013.
The higher income has been defined as $200,000 for a single tax filer's and $250,000 for a married couple or joint filer's.