A Taxing Story: Capital Gains and Losses
INVESTMENT • Read Time: 4 min
A Taxing Story: Capital Gains and Losses
Chris Rock once remarked, “You don’t pay taxes – they take taxes.”1 That applies not only to income, but also to capital gains.
Capital gains result when an individual sells an investment for an amount greater than their purchase price. Capital gains are categorized as short-term gains (a gain realized on an asset held one year or less) or as long-term gains (a gain realized on an asset held longer than one year).
Long-Term vs. Short-Term Gains
Long Term Capital Gains Tax Brackets (for 2021)
| Tax Bracket/Rate | Single | Married Filing Jointly | Head of Household |
| 0% | $0 – $40,400 | $0 – $80,800 | $0 – $54,100 |
| 15% | $40,401 – $445,850 | $80,801 – $501,600 | $54,101 – $473,750 |
| 20% | $445,851+ | $501,601+ | $473,751+ |
Rules for Capital Losses
Finally, for some assets, the calculation of a capital gain or loss may not be as simple and straightforward as it sounds. As with any matter dealing with taxes, individuals are encouraged to seek the counsel of a tax professional before making any tax-related decisions.
1. BrainyQuote.com, 20212. Kiplinger.com, June 15, 2021
3. Investopedia.com, February 16, 2020
4. Investopedia.com, February 1, 2021
5. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
The content is developed from sources believed to be providing accurate information.The information in the material in not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professional for specific information regarding your individual situation. The opinions expressed and material provided are for general information, should not be considered a solicitation for the purchase or sale of any security.
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