[Anonymous]

General capital assets:

Marginal tax rate of 15% 0%

Marginal tax rate 25% through 35% 15%

Marginal tax rate of 39.6% 20%

Why is there a gap between 35% and 39.6%? What is the capital gains rate if your marginal tax rate is 37%?

[gt5717b]

It's confusing because the 15% Cap. Gains rate applies to multiple tax brackets (25%, 28%, 33%, & 35%) while the 20% Cap. Gains rate only applies to the 39.6% bracket.

While your average tax rate can be virtually anything, your marginal rate will always be one of the bracketed rates.

REG - 89
FAR - 84
AUD - 73, 86
BEC - 89

GA Licensed CPA

[How many letters do you need]

Very well said gt! Thanks!

MBA,CMA,CPA, CFF?, ABV?

[Author]

Replies