An example of a flight data recorder; the underwater locator beacon is the small cylinder on the far right. (Translation of warning message in French: FLIGHT RECORDER DO NOT OPEN) The warning appears in English on the other side.
1 Long-term gains are treated much better. 2  Long-term gains are taxed at 15% or 20% except for taxpayers in the 10% or 15%t bracket. 3  For low-bracket taxpayers, the long-term capital gains rate is 0%. 4  There are exceptions, of course, since this is tax law:.
Thus the highest tax rate that could apply to capital gains income is 39.6 + 3.8 = 43.4% on short-term gains taxed at ordinary rates or 23.8% (20% + 3.8%) on long-term gains. Tax planning for investors focuses on deferring the sale of profitable investments until you qualify for the discounted long-term capital gains tax rate.