Question of the Day

There will be a financial literacy question posted every day of the month. Answer it and share what you "know." It could be the money question.

The question of the day:

What is a long term capital gain? What is the long term capital gains rate per tax bracket? Why should you care?

Posted 03.29.15 | Answer the question | 3 Comments

Answers

  1. Comment by Garrett Haag on 03.29.15 at 8:29 am

    The long term capital gains rate is the rate at which your money making money gets taxed. When you get qualified dividends or sell for a capital gain that money is taxed differently than normal income. for the 10-15% tax bracket the capital gains rate is 0%, which is awesome. For the 25-35% tax bracket capital gains is 15% and from the 39.6 bracket and on it is 20% which is lower on every bracket. Capital gains is a good way to have your money grow due to the money being taxed less and you get it passively which is easier than earned income because all you have to do is watch your money grow. You should care because long term capital gains is something you should try to get compared to short term capital gains which is taxed like normal income.

  2. Comment by Adam Luloff on 03.29.15 at 11:31 am

    Long term capital gain is the money made on an asset that is held longer than one year. Garret touched on how these gains are taxed per bracket quite well! You should care because understanding you tax situation is a great way to save more money that can be put twords your goals and lead to Finacial Happine$$!

  3. Comment by Mike Finley on 03.29.15 at 5:05 pm

    Nice job gentlemen. Let’s recap.

    (1) Long term capital gains go to investors who hold their investments for long periods of time. Be that investor!