By Admin | August 13, 2007
Many people are very surprised to find out that the 15% Federal capital gains tax rate does NOT apply for all transactions.
Yes, there is a 15% Federal capital gains tax rate; however, it does NOT apply for every one.
To help you see the various Federal capital gains tax rates we’ve put together a quick table for you to reference:
Federal Capital Gains Tax Rates: current to 2007
Capital Asset Type
Period of Time Held
Capital Gains 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|
As you can see, there are various Federal capital gains tax rates that tax different assets at different rates and different incomes at different rates.
Most everyone falls into the 15% tax rate for appreciated real estate, but make sure before you go through with the sale.
Be sure to bookmark this page or print it off for quick future reference.