![]() Perhaps the most common exception involves gains from the sale of collectibles that qualify as capital assets.įor this special rule, a "collectible" can be a work of art, antiques, stamp, coin, bottle of wine or other alcoholic beverage, gold or other precious metal, gem, historic object, or another similar item. There are a few exceptions to the general capital gains tax rates. So, in most cases, you can save on taxes by holding capital assets like stocks, bonds, and real estate for more than one year before selling. Generally, the rate you pay for long-term capital gains is less than the rate you pay for short-term gains. For the ordinary tax rate that applies to you, see 2023 Federal Income Tax Brackets and Rates. The income thresholds for each tax rate are also adjusted annually for inflation. Those rates currently range from 10% to 37%, depending on your taxable income. The tax rate on short-term capital gains (i.e., from the sale of assets held for one year or less) is the same as the rate you pay on wages and other "ordinary" income. To see how all the taxable income thresholds changed from 2023 to 2024, here are the figures for the 2024 tax year (that you'll use for returns filed in early 2025).Ģ024 Long-Term Capital Gains Tax Rate Income Thresholds Without an adjustment to match the rise in inflation, more people would end up paying a higher rate in 2024 than they did in 2023. However, that's a good thing for taxpayers, especially for people with a stagnate income or an income that grows slower than the rate of inflation. The IRS has already released the 2024 thresholds, so you can start planning for 2024 capital asset sales now. The income thresholds for the long-term capital gains tax rates are adjusted each year for inflation. ![]()
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