Capital Gains Tax Rates – State by State
Posted by admin under: Main Oct 31One of the “unknowns” in the real estate investing world is the topic of caital gains… in 
particular… the capital gains tax rates that you and are are subject to.
Truthfully… I’m not sure why I didn’t write a post about this earlier… afterall, I come from the world of tax planning and am the VP of a company who helps sellers of highly appreciated assets defer capital gains taxes.
One huge question that I field from sellers everyday both on this website and at the tax planning firm is, “What are the capital gains tax rates?”… “What will I owe in capital gains taxes?”
The second question is a bit tougher to answer without knowing specificis (I can go over specifics if you want me to… let me know in the comments area), but the first question is pretty simple.
Here we go… to make it simple to read, I’ll just post a chart or two below and get out of your way.
Keep in mind that with the new Democratic Congress, it is likely that capital gains tax rates will rise above the current 15% federal rate. So the rates below are as of today.
Something my lawyers make me say:
The information on this page is not meant to be tax advice nor should it be taken as gospel. Consult your own tax advisor about your specific situation. The numbers below are accurate to our knowledge, but hey… we do make mistakes. Check with your tax advisor about the actual capital gains tax rate applicable to your situation.
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Federal Capital Gains Tax Rates – As of 2007
Type of Capital Asset Holding Period Tax Rate Short-term capital gains (STCG) One year or less Ordinary income tax rates up to 35% Long-term capital gains (LTCG) More than one year 5% for taxpayers in the 10% and 15% tax brackets 15% for taxpayers in the 25%, 28%, 33%, and 35% tax brackets Collectibles One year or less STCG tax rates up to 35% Collectibles More than one year 28% Small Business Stock Gains (Section 1202) More than five years 28% on the gain not excluded Real Estate Main Home One year or less STCG More than one year LTCG taxed at 5% or 15% after any exclusion amount
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*From IRS.gov
State Capital Gains Tax Rates as of 2007
Source: Capital Gains Tax Rates – State by State
Wednesday, October 31st, 2007 at 3:12 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.