Capital gains tax is paid on income that derives from the sale or exchange of an asset, such as a stock or property that’s categorized as a capital asset.
The U.S. uses a progressive tax system. Lower income individuals are taxed at lower rates than higher income taxpayers on the presumption that those with higher incomes have a greater ability to pay more.
Capital gains tax rates depend on how long the seller owned or held the asset. Short-term capital gains for assets held for less than a year are taxed at ordinary income rates. However, if you held an asset for more than a year then more preferential long-term capital gains apply. These rates are 0%,15%, or 20%—depending upon on your income level.
We are aware that tax planning opportunities are not limited by state or national borders. Some of the most effective tax planning solutions are found in other states or in the U.S. territories.
Our staff will guide you through the application process and then help you manage the complex rules that govern the businesses that participate in these programs. Our professional staff understands the policy behind the laws that permit significant tax credits designed to support economic growth in our nation’s territories. As government employees, we regulated these programs.