Investors
Long-term Capital Gains and Qualified Dividends
The maximum tax rate on net capital gains remainsat 15% for 2011. However, for taxpayers in the 10% or 15% income tax bracket, the tax rate on net capital gains is zero. Capital gains on investments held for one year or less are taxed at regular income tax rates.
Qualified dividend income is also taxed at a top rate of 15%(generally zero for taxpayers in the 10% or 15% income tax bracket).
Offset Capital
Gains with Losses Capital losses are netted against capital gains. If your capital losses are greater than your capital gains, you can deduct up to $3,000 of your combined long-term and short-term capital losses against ordinary income ($1,500 if married filing separately). Any remaining net capital losses may be carried over to future years.
Information is current as of Monday, Dec. 12, 2011.
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This article was provided by the American Institute of Certified Public Accountants (AICPA).
