capital entrepreneurs
Nov 25
2009
2009
What is the capital gains tax?
I am an entrepreneur and I am planning for the future when we sell our business. Does the capital gains percentage vary depending on the size of the capital gains?
Depends upon how long the asset was held. If for one year or less, it’s taxed at your margainal rate so the rate will depend upon total income. If held for over one year it’s taxed at the long term CG rate which is normally 15%. However if your marginal rate is already 15% or less the rate drops to 5% regardless of the size of the gain.
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