Capital Gains Tax Exemptions for 2011, 2012

If you have sold any stocks, bonds, or real estate then these would be considered your capital gains. You are not required to pay capital gains on these assets from year to year, only when they are sold. The capital gains tax exemption amount will be determined by comparing the original purchase price to the sale price.

How Much?

• Short-term profits can be taxed all the way up to 35% in 2011.
• Long-term gains in 2011 are taxed at a flat 15% except for taxpayers in the 10% or 15%t bracket. For low-bracket taxpayers, the long-term capital gains rate is 0% in 2011. So, for married couples, they must have income below $67,900.00 and a single filer must have income below $33,950.00.
• Long-term gains on collectibles—such as stamps, antiques and coins—are taxed at 28%, unless you're in the 10% or 15 % or 25% bracket, in which case the 10% or 15% rate or 25% rate applies
• Gains on real estate that are attributable to depreciation—since depreciation deductions reduce your cost basis, they also increase your profit dollar for dollar—are taxed at 25%, unless you're in the 10% or 15% bracket.
• Long-term gains in 2011 from stock sales by children under age 19—under age 24 if they are students—may not qualify for the 0% rate because of the Child Tax rules. (When these rules apply, the child’s gains may be taxed at the parents’ higher rates.)

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