In addition to regular capital gains tax, some taxpayers are subject to the net investment income tax. It imposes an additional 3.8% tax on your investment income, including your capital gains, if your modified adjusted gross income is greater than:
- $250,000 if married filing jointly or a surviving spouse
- $200,000 if single or a head of household
- $125,000 if married filing separately
The Tax Cuts and Jobs Act changed the breakpoints for the basic capital gains rates to align with taxable income (not tax brackets). Research the THE THREE LEVELS OF LONG-TERM CAPITAL GAINS TAX, 2019: Internal Revenue Service. “Rev. Proc. 2018-57,” Page 11.
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This article was provided by Sarah Marrinan. Find more great info about Sarah on this website at www.CallSarahFirst.com/about.
As a Certified Residential Specialist with multiple additional real estate designation, certifications, awards and experience, if you’re thinking of selling or buying, Sarah Marrinan would love to share her knowledge and expertise. Proudly servicing the Twin Cities, MN with extra focus in these areas: White Bear Lake, Hugo, Lino Lakes, Centerville, Vadnais Heights, Shoreview, Mounds View, Circle Pines, Mounds View, Mahtomedi, Forest Lake, Columbus, Wyoming, Saint Paul, Minneapolis, Roseville, Lake Elmo, Stillwater and Oakdale, MN.
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