If there’s one thing that’s extremely confusing it is taxes. But even more confusing is Capital Gains Tax Rates. So with all this talk of new tax rates what does it mean for your capital gains tax rate 2018? What is a capital gains tax and who does it apply to?
Capital Gains Tax Rate 2018
To be able to define what you’re being taxed on let’s define net capital gain. Assets that we own outright incur a sufficient amount of financial value over time, but can also go down in value as well. The net capital gain is how much money is accumulated through your investment after you own it outright. This can include real estate properties, automobiles, and other major investments. The net capital gain is what you are taxed on at the end of the year, and the net capital gain is how much you have made off of your investment. Conversely, a net capital loss is the amount of money lost since you made your investment. So what you’re actually taxed on is your net capital gain. So what is that? If you take all your investments that have made money during the year that would be your capital gains. Then take all of your investments that lost money during the year. That’s you’re capital loss. Combine the two and you get your net capital gains. From this you’ll be taxed in the following manner.
Capital Gains Tax Rate for Single Filers in 2017:
- Income / Tax Bracket / Short-Term Capital Gains Rate / Long-Term Capital Gains Tax Rate
- Up to $9,325 / 10% / 10% / 0%
- $9,326 to $37,950 / 15% / 15% / 0%
- $37,951 to 91,900 / 25% / 25% / 15%
- $91,901 to $191,650 / 28% / 28% 15%
- $191,651 to $416,700 / 33% / 33% / 15%
- $416,701 to 418,400 / 35% / 35% / 15%
- $418,401 and over / 39.6% / 39.6% / 20%
Here at the Nealson Group, we are experts in all things finances and our respective accounting field. From business to personal, we cover a full range of accounting services. We know small business because we’ve been dealing with them for over 20 years. Between buying and selling businesses we know how businesses work inside and out. This allows us to give you a strong financial base that allows you to run your business without having to worry about keeping your finances constantly. We have different packages to accommodate the different sized businesses we serve. You can start at our smallest plan and move on up from there. Don’t let taxes intimidate and scare you. Just call Nealson Group. We’ll be happy to be there for you and your business. Visit our website for more information about our accounting services or to Contact Us so that we can discuss how our financial experts can help you and your business today. Visit us on Facebook at Nealson Group.