Are capital gains income?

Brookswood

Brookswood

Senior Member
I am looking for the opinions of others on what is going to be a hot topic in my state next year.

In your opinion, do you consider capital gains from the sales of stocks and bonds as income?

All I need is a simple yes or no.
 

Brookswood said:
I am looking for the opinions of others on what is going to be a hot topic in my state next year.

In your opinion, do you consider capital gains from the sales of stocks and bonds as income?

All I need is a simple yes or no.
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Yes. But if you hold a security for under one year when you sell it it's a short term capital gain, over a year it's a long tern capital gain. Same with losses.
 
It is a little more complicated than that. I have done taxes for the AARP tax help program for a number of years. Short term capital gains (less than a year) are treated as ordinary income. Long term capital gains are taxed at 0% or 15%, depending on your income.
I would suggest you buy a tax software package like Turbotax to help you through the process.
 
Not if the stocks and bonds are held in an IRA. If you move the money from the stocks into a savings account which is also an IRA, it doesn't count as income until you actually withdraw the money. In other words, you don't have to pay taxes on IRA money until you have the money in your hot little fist, and then, unfortunately, it does count as income.
 
Might get some additional opinion in the financial section at top of forum.

That being said there'a a lot of rumor of increasing or eliminating with certain types of cap gains. Heard some want to clamp down on house flippers with a 40% capital gains on a home resold in less than a year. Others want that 15% eliminated or raised.
 
WhatInThe said:
Might get some additional opinion in the financial section at top of forum.

That being said there'a a lot of rumor of increasing or eliminating with certain types of cap gains. Heard some want to clamp down on house flippers with a 40% capital gains on a home resold in less than a year. Others want that 15% eliminated or raised.
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Personally, I would eliminate the capital gains rate and use the earned income rates. But I would also adjust capital gains for inflation and only pay taxes on a real gain.
 
DUH. I kind of know what capital gains are. I also know that some think there's a whole range of what is considered "income". I don't know why. I take a rather easy out. If you can spend it, then it's income.
 

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