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The 2022 Capital Gains Tax Rate Thresholds Are Out – What Rate Will You Pay?

November 16, 2021

From the Kiplinger website

If you sell stocks, mutual funds or other capital assets that you held for at least one year, any gain from the sale is taxed at either a 0%, 15% or 20% rate. Those tax rates for long-term capital gains are typically much lower than the ordinary tax rates you’d otherwise pay, which currently can be as high as 37%.

However, which one of those capital gains rates – 0%, 15% or 20% – applies to you depends on your taxable income. The higher your income, the higher the rate.

The taxable income thresholds for the capital gains tax rates are adjusted each year for inflation. The IRS has already released the 2022 thresholds, so you can start planning for 2022 capital asset sales now.

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