Long-term (held >1 yr): 0/15/20% federal + 3.8% NIIT. Short-term: taxed as ordinary income. State taxes stack on top.
Entities & Tax
Capital Gains Tax
Federal tax on the profit from selling an asset held for gain.
More in Entities & Tax
- 1031 Exchange— IRS §1031 lets you defer capital gains tax when selling investment real estate and reinves…
- Qualified Intermediary (QI)— A neutral third party that holds 1031 exchange proceeds — required by the IRS.
- Cost Segregation Study— An engineering-based analysis that reclassifies parts of a building into shorter depreciat…
- Depreciation— The non-cash annual expense that lets you deduct the wear-and-tear of a rental building ag…
- Bonus Depreciation— A federal provision letting investors deduct a large percentage of qualifying property in …
- Depreciation Recapture— When you sell, the IRS 'recaptures' depreciation you claimed, taxing it at up to 25%.