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What is the Tax Rate for Short Term Capital Gains?

2014 Short Term Capital Gains are taxed as “ordinary” income

As of 2013, individuals earning an income of $450,0001 and over saw an increase in the capital gains tax rate. For this group, long term capital gains tax rate jumped from 15% to 20% while the short term 2013 capital gains tax rates increased by 4.6%.

Check out part one of this article, to learn about long term capital gains. Keep reading for more on short term capital gains and how they relate to filing your taxes. 

2014 Tax Return Coupon

What are short term capital gains?

A Capital gain is a profit made from selling any asset when the sale price exceeds the purchase price.

The capital gains clock begins the day after you acquire the asset until the day you sell it (this includes day you sell it). Depending on how long the capital gain is held for will determine if it falls into the short-term category or long-term.

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What is Tax Rate for Long Term Capital Gains?

Long Term Capital Gains are Taxed at a Different Rate Than Short Term Capital Gains

If you earned a profit in 2014 from selling an asset such as stock shares or a house, you’ll need to report it as a long term capital gain on your 2014 tax return.

Long term capital gains are taxed differently than short term gains and other income. In fact, long term capital gains are taxed at a lower rate.

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The Top Ten States for Military Retirees- Part Two

In The Top Ten States for Military Retirees- Part One, we gave you the top five best picks to spend military retirement in. Five others fall among the best states for military retirees.

In the top ten states for military retirees part one,  at the top of the list, in the number one spot was Florida, followed by Texas, Alabama, Tennessee and Mississippi.Wondering what other states made the list?  If the top five didn’t catch your attention, maybe one of these will:

#6-Nevada: Are you a military retiree who likes to gamble? In sixth place is Nevada. Nevada has no income tax and no tax on retirement income and social security benefits. Although, there is a 6.5% state sales tax and there are also no property tax breaks for seniors in Nevada (perhaps you’ll win this back on weekend trips to Las Vegas).

#7-Washington: Washington ranks as the seventh best state to live in for military retirees. All retirees don’t pay taxes on their retirement income, social security benefits or pensions. Like Nevada, Washington has a 6.5% state sales tax and this percent can even increase to 9.5%, depending on the local tax.  There is a four property-tax relief program for seniors owning homes.

#8-Illinois: Illinois at seventh place, exempts retirement tax for military retirees and does not tax social security benefits.  The state sales tax is also 6.25% and can go as high as 10% in some areas. For seniors, there is a homestead exemption which allows $5000 reduction of the property that is paid taxes on. Illinois does not have an inheritance tax.

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