Chris Rock once remarked, “You don’t pay taxes – they take taxes.” That applies not only to income but also to capital gains.
When someone sells an investment for an amount greater than their purchase price, the result is a capital gain. These gains are categorized as short-term (a gain realized on an asset held for one year or less) or long-term (a gain realized on an asset held for more than one year).
Keep in mind that the information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
Long-Term vs. Short-Term Gains
Short-term capital gains are taxed at ordinary income tax rates. Long-term capital gains are taxed according to different ranges (shown below).1
Long Term Capital Gains Tax Brackets (for 2024)
| Tax Bracket/Rate | Single | Married Filing Jointly | Head of Household |
| 0% | $0 - $47,025 | $0 - $94,050 | $0 - $63,000 |
| 15% | $47,026 - $518,900 | $94,051 - $583,750 | $63,001 - $551,350 |
| 20% | $518,900+ | $583,750+ | $551,350+ |
It should also be noted that taxpayers whose adjusted gross income is in excess of $200,000 (single filers or heads of household) or $250,000 (joint filers) may be subject to an additional 3.8% tax as a net investment income tax.2
Also, keep in mind that the long-term capital gains rate for collectibles and precious metals remains at a maximum of 28%.3
Rules for Capital Losses
If you have capital losses, you can use them to offset your capital gains. If your losses are more than your gains, you can use up to $3,000 of those losses to reduce your taxes on other types of income. If you have more than $3,000 in losses, you can carry them forward to future years until you use them up. Just keep in mind that under current law, you lose the ability to carry these losses forward only upon death.4
Also, calculating a capital gain or loss for some assets might not be as simple as it seems. As always, it's a good idea to talk to a tax professional before making any tax-related decisions to ensure you're on the right track.
1. IRS.gov, 2024
2. IRS.gov, 2024
3. Investopedia.com, November 28, 2023
4. IRS.gov, 2024
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2025 FMG Suite.
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