Your Guide to Capital Gains Taxes in 2018
Congress recently passed the Tax Cuts and Jobs Act, so it appears that sweeping tax changes are set to go into effect in 2018. While the bill makes a number of changes to our individual tax code, one concern to investors is the capital gains tax. Here's a rundown of the capital gains tax structure for 2018, and how you could be affected.
In a nutshell, nothing changed in the basic capital gains tax structure.
For starters, long-term capital gains are still defined as gains made on assets that you held for over a year, while short-term capital gains come from assets you held for a year or less. Long-term gains are taxed at rates of 0%, 15%, or 20%, depending on your tax bracket, while short-term gains are taxed as ordinary income.
Source: Fool.com
