Anyone around here a CPA? I have a question about gains calculations and how it relates to taxable income. I'm getting conflicting information from two accountants I've spoke with about this question.
https://www.irs.gov/taxtopics/tc409
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Capital Gain Tax Rates
The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than $80,000.
A capital gain rate of 15% applies if your taxable income is $80,000 or more but less than $441,450 for single; $496,600 for married filing jointly or qualifying widow(er); $469,050 for head of household, or $248,300 for married filing separately.
However, a net capital gain tax rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.
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So lets say that you're married and your taxable income is $60,000 which is $20,000 less than $80,000 threshold. If that couple disposes of $50,000 in stocks that fall under long term capital gains, how is that taxed.
One accountant told me that the entire $50,000 is taxed at 15% since it throws you over the $80,000 cap. The other said that the first $20,000 is taxed at 0% and then the remaining $30,000 is taxed at 15%.
Anyone know who's right?