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Capital Gain Tax Calculator For 2021 & 2022

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capital gain tax calculator

The capital gain tax calculator is a quick way to compute the capital gains tax for the tax years 2022 (filing in 2023)and 2021. As you know, everything you own as personal or investments- like your home, land or household furnishings, shares, stocks or bonds- will fall under the term ” capital asset”. IRS will charge you tax on the gains if you sell or transfer or barter the said capital asset. For knowing more on capital gains, please refer IRS  Publication 544, Sales and Other Dispositions of Assets;

Tax rates on capital gains

The tax rates on capital gains are different for different types of capital assets which is determined on the basis of the period of holding of a capital asset.

Short Term Capital Gains Tax

If you hold the assets for less than 12 months before its sale, the gain or loss on sale of such a capital asset is short term capital gains or loss as the case may be. The short term capital gains are taxed at the same tax rate that applies to your normal income as there is no special tax rate for short term capital gains.

Long Term Capital Gains

Similarly, if the capital asset is held for twelve months or more, the sale of that capital asset shall generate long term capital gains (or loss ). There is a special tax rate for long term capital gains. For tax year 2021 & 2021 the LTCG tax rates are

2022 Capital Gains Tax Rate

 RateFor Unmarried Individuals, Taxable Income OverFor Married Individuals Filing Joint Returns, Taxable Income OverFor Heads of Households, Taxable Income Over
0%$0 $0 $0 
15%$41,675 $83,350 $55,800 
20%$4,59,750 $5,17,200 $4,88,500 

2021 Long Term Capital Gains Tax Rate 

 Rate (%)For Unmarried Individuals, Taxable Capital Gains OverFor Married Individuals Filing Joint Returns, Taxable Capital Gains OverFor Heads of Households, Taxable Capital Gains Over
0%$0$0$0
15%$40,400$80,800$54,100
20%$445,850$501,600$473,750

Capital Gain Tax Calculator

2021 Capital Gains Calculator

Short Term Capital Gains vs Long Term Capital Gains

Internal Revenue Code obviously give lots of relief to gains out of sale or transfer of long term capital assets. So here are pointed comparison between short term capital gains and long term capital gains as far as tax burden is concerned

  1. Short term capital gains are taxed at the same tax rate that is applied to your normal income. In other words, if you are falling in 28% tax bracket, short term capital gains in your hand will be will be taxed @ 28%.
  2. Long term capital gains are taxed on lower rates -maximum is 20%.
  3. In case of long term capital gains on sale of a home after using it as primary residence for at least 2 years out of 5 years , you are eligible to claim exemption upto $2,50,000 if you are single,($2,50,000 in case filing returns jointly). Checkout the real estate capital gains calculator

Is there any special capital gains tax on real estate sales?

The answer is no. The tax rate on capital gains on the sale of real estate is the same for every other asset classified as long term capital asset or short term capital tax. In other words, whether you earn long term capital gains on real estate or stock investment sales, the tax rate will be the same.

Have you tested our 1031 exchange calculator that can tell you much tax can be deferred on long term capital gains

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