Capital Gains Tax Brackets 2020

Capital assets are your personal investments and assets including your car, home, RV ( Recreational Vehicle ). Every time you see stock to profit, a capital gain is generated. Shortly, profits and gains are taxable. There are two main types of capital gains; short-term and long- term. Let’s take a closer look at these two:

Short-Term Capital Gains

Your ordinary income tax rate is the basis for the short term capital gains. These rates didn’t change for the tax year 2020. There’s been a slight change in the tax rate brackets as an adjustment to the inflation.

There are seven different short-term capital gains tax brackets under 4 different categories of taxpayers. You can check the table below for the numerical values of the tax rates and the amounts:

2020 Tax Bracket (%)Single Filer ( $ )Married Filing Jointly ( $ )Head of Household ( $ )
100 – 9,8750 – 19,7500 – 14,100
129,876 – 40,12519,751 – 80,25014,101 – 53,700
2240,126 – 85,52580,251 – 171,05053,701 – 85,500
2485,526 – 163,300171,051 -326,60085,501 – 163,300
32163,301 – 207,350326,601 – 414,700163,301 – 207,350
35207,351 – 518,400414,701 – 622,050207,351 – 518,400
37over 518,400over 622,050over 518,400

Long-Term Capital Gains

If you have assets that held over a year, these are called long-term capital gains. There three different tax brackets/rates for long term capital gains taxes.

Just like in the short-term capital gains tax brackets, there are applied for the four taxpayer categories as well. Holding investments for at least a year before you sell them, you are more likely to make a profit out of your long-term-gains. You can check the numbers of the 2020’s long term capital gains tax brackets on the following table :

Tax Rate ( % )Single Filer ( $ )Married Filing Jointly ( $ )Head of Household ( $ )
00 – 40,0000 – 80,0000 – 53, 600
1540,000 – 441,45080,000 – 496,60053,601 – 469,050
20over 441,451over 496,601Over 469,051

Collectible Long-Term Capital Gains

Gold, silver, rare currency coins, antique pieces, unique artworks are collectibles. If these are held over one year, they are taxed at %28

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