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Income Tax Planning
Chapter 4: Gross Income from Personal and Investment Activities/CAPITAL GAINS TAX RATE
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 4: Gross Income from Personal and Investment Activities

CAPITAL GAINS TAX RATE

01.Core Concepts

• Exceptions: • Collectibles: 28% • Unrecaptured Section 1250 Gain: 25%  Resulting from straight-line depreciation • Effective rate may be more than maximum. • Capital gains increase a taxpayer’s AGI. • Increased AGI may lead to phaseouts. Don’t forget the 3.8% Medicare tax imposed by the Affordable Care Act.