The federal income tax rate that applies to gains from the sale of stocks, mutual funds or other capital assets depends on how long you held the asset and your taxable income. Gains from the sale of capital assets that you held for at least one year, which are considered long-term capital gains, are taxed at either a 0%, 15% or 20% rate.
However, which one of those long-term capital gains rates applies to you depends on your taxable income. The higher your income, the higher the rate. Following are the capital gains taxable income thresholds for the 2021 tax year: [Read more...]