Capital gains rates – including the special 0% rate for some taxpayers
remain unchanged under the new tax law. True or False
Please explain the answer. Thank you!
Ans:
Yes, it is true that Capital gain rates including the special 0% rate for some taxpayers remain unchanged under the new tax law.
There are two types of Capital Gain. One is Short Term and other is Long Term Capital Gain. Short Term Capital Gains are those gains which earned on capital assets held for less than 12 months. For gains earned on capital assets held for more than 12 months are considered as Long Term Capital Gain.
Short Term capital gains are taxable as per Tax Bracket applicable on the Taxpayer as per prescribed critiria.
However for long term capital gain, Under new rules Gains Upto $40,000 are non taxable. So we can say it is true that for some taxpayer Tax on Capital Gains remain Zero.
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