Capital gains taxes became higher – and more complicated – this year. The top capital gains rate is now 20% (used to be 15%) and other changes can push actual payments to almost 25% for high-income filers.

 

Even lower income filers may pay more.

The 3.8% tax on net investment income and something called the “Pease limit” affect joint filers with more than $250,000 of adjusted gross income (AGI) and singles with more than $200,000 of AGI. The Personal Exemption Phaseout starts at $300,000 for joint filers and $250,000 for singles.

 

The wall Street Journal published a good article on this February 15th. You can read it here.

 

Arthur Stein and Arthur Stein Financial, LLC are not authorized to give legal or tax advice. For information on your specific situation, please consult your tax advisor regarding any tax implications and your attorney for legal implications. As required by the US Treasury Regulations, you should be aware that this presentation is not intended to be used and it cannot be used for the purposes of avoiding penalties under federal tax laws.