KirkLindstrom.com - Articles  - 2015 - US Federal  Capital Gains Tax Brackets & Rates for 2015
Kirk Windsurfing at Palo Alto in SF Bay in May 2009
 US Federal Capital Gains Tax Rates for 2015
US Federal Capital Gains tax rates & brackets for 2015 Tax Year
US Federal  Income Tax Brackets - Federal Tax Rates for 2015 		US Tax Rates

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February 13, 2015:  If you are in the lower income brackets, perhaps from retiring early and writing a newsletter to have enough income to fund ROTH IRAs and pay bills, then you should consider taking advantage on the ZERO Tax rate on long-term capital gains. 

People who retire early and live on savings before collecting Social Security can ALSO again take advantage of Regular to ROTH IRA conversions.

You can also take advantage of these low rates to perhaps fund "taking a sabbatical" during your working years to travel or windsurf over the summer by funding the sabbatical with stock gains.

Lastly, low income workers can use their investments in stocks to fund emergencies and not have to pay a tax penalty if their total adjusted gross income, AGI, stays below the 25% rate. 

For a married couple filing jointly, you start paying federal capital gains taxes on long-term gains when your taxable income reaches $74,900.  For more, see:  US Federal  Income Tax Rates & Brackets for 2015

2015 Capital Gains Tax Brackets & Rates
Ordinary Income 
Tax Rate		Long-term 
Capital Gain Rate		Short-term 
Capital Gain Rate
10%0%10%
15%0%15%
25%15%25%
28%15%28%
33%15%33%
35%15%35%
39.6%
20%
39.6%

This means if you are in the 25% federal income tax bracket, then your long-term capital gains tax rate is 15%. 

Notes:
 
  • Each tax rate applies to a range of income, which is called a tax bracket. Each tax rate applies to a specific range of taxable income. Taxable income is total income after various deductions have been subtracted
  • Capital gains up to $250,000 ($500,000 if filed jointly) on real estate used as primary residence are exempt.
  • The Medicare surtax on net investment income. A 3.8% surtax will be due on the lesser of your net investment income for the year, or the amount by which your “modified adjusted gross income”—or MAGI—exceeds those income thresholds. Note that a taxpayer could be subject to both the additional 0.9% tax on earned income and this 3.8% tax.
  • For the 39.6% ordinary tax rate refer to Publication 505, Tax Withholding and Estimated Tax.
  • There are a few other exceptions where capital gains may be taxed at rates greater than 15%:
    1. The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate.
    2. Net capital gains from selling collectibles (like coins or art) are taxed at a maximum 28% rate.
    3. The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate.
US Federal  Income Tax Brackets - Federal Tax Rates for 2015




Article: Beware of Annuities
Note 1.  Source  http://www.irs.gov/taxtopics/tc409.html
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