Long-term capital gains rate

[expat]

Under the new federal tax laws, if I am single with zero annual income and realize a $1M long-term capital gain, what is the capital gains rate?

Is it zero percent because there is no income??

[livesoft]

If you realize a $1M LT cap-gain, you will by definition have at least $1M of income.

[KyleAAA]

You would pay the max marginal rate in that case. You'd have to do the math to find out your exact effective tax rate.

[TN_INVEST]

Gross income includes "all income from whatever source," and is not limited to cash received. It specifically includes wages, salary, bonuses, interest, dividends, rents, royalties, income from operating a business, alimony, pensions and annuities, share of income from partnerships and S corporations, and income tax refunds. Gross income includes net gains for disposal of assets, including capital gains and capital losses. Losses on personal assets are not deducted in computing gross income or adjusted gross income.

[Leesbro63]

My understanding would be 15% on the first $250,000 or $37,500. 18.8% on the amount between $250,000 and $400,000 ($450,000 if married) or $28,200. And 23.8% on the excess which is $142,800. For a total tax due of $208,500 or about 21% effective total tax rate.

[tfb]

Under the new federal tax laws, if I am single with zero annual income and realize a $1M long-term capital gain, what is the capital gains rate?

See today's post Fiscal Cliff Deal and Dividends and Capital Gains. It will be a blended rate.

[Sidney]

If you have $1.0 million in loss carry-forwards from prudent TLH trading in 2008 and 09, you would owe nothing.