Tax Rate On This?

Q: I am in the 10 percent bracket. I sold some shares of stock this month (bought in 1978). The gain is about $2200. What is the capital gains tax rate on this?

A: The rate on long term capital gains (held more than one year) is 5% so long as your regular tax rate is not more than 15%. In this case you are safe - the rate will be 5%. For short term gains, the tax rate is the ame as your other ordinary income.

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