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A "short term capital gain", or gain on the sale of an asset held for less than one year of the capital gains holding period, is taxed as ordinary income. Ordinary income stands in contrast to capital gain, which is defined as gain from the sale or exchange of a capital asset. A personal residence is a capital asset to the homeowner.
Alaska is an income-tax and sales-tax-free state, making it one of the best places to retire on a fixed income. Home values in Fairbanks increased about 12.09% year over year, and the median home ...
Interest income and ordinary dividends (qualified dividends are taxed at capital gains rates) are taxed at the same rate as your ordinary income tax. For example, if your federal income tax rate ...
Certain types of taxes (e.g., income, personal property, sales and real estate) If you qualify for certain tax credits, you could also reduce how much you owe [ 24 ].
The remainder of any gain realized is considered long-term capital gain, provided the property was held over a year, and is taxed at a maximum rate of 15% for 2010-2012, and 20% for 2013 and thereafter. If Section 1245 or Section 1250 property is held one year or less, any gain on its sale or exchange is taxed as ordinary income.
Local governments have the authority to impose sales taxes on top of state-level levies. This can drastically alter the overall tax rate in various areas within a single state. For example, in New York City, consumers pay a combined state and city sales tax, but in other areas of the state, the rate could be lower since there are no local taxes.
The post Common Types of Income appeared first on SmartReads by SmartAsset. Understanding the different types of income and their tax implications is key to managing your finances effectively.
State Taxes on Dividends. Not all states tax ordinary income, and not all tax long-term capital gains either. But if you live in a state that does, you should prepare to pay the appropriate taxes ...