Question

What would the taxable income amount be if some shares purchased on 12 December 2014 for $16000 were sold on 15 July 2015 for $28000? What would the taxable income amount be if the purchase date was actually 12 December 2013?

Answer 1

Shares purchased on Dec 12, 2014 and sold it on July 15, 2015 within less than a year it will incurred short term capital gain tax
Short-term capital gains tax rates equal your ordinary income tax rate
Taxable Amount = ($28000 - $16000)	$12,000.00
Shares purchased on Dec 12, 2013 and sold it on July 15, 2015 held for more than a year it will incurred long term capital gain tax
Long-term capital gains tax rates are 0%, 15% or 20% depending on the taxable income and filing status. They are generally lower than short-term capital gains tax rates.
Taxable Amount = ($28000 - $16000)	$12,000.00