For this special rule, a "collectible" can be a work of art, antique, stamp, coin, bottle of wine or other alcoholic beverage, gold or other precious metal, gem, historic object, or another similar item. Perhaps the most common exception involves gains from the sale of collectibles that qualify as capital assets. There are a few exceptions to the general capital gains tax rates. So, in most cases, you can save on taxes by hold capital assets like stocks, bonds, and real property for more than one year before selling. Generally, the rate you'll pay for long-term capital gains is less than the rate you'll pay for short-term gains. SEE MORE Selling and Rebuying Stocks? Beware the Wash Sale Rule For your ordinary tax rate, see What Are the Income Tax Brackets for 2022 vs. Those rates currently range from 10% to 37%, depending on your taxable income. The tax rate on short-term capitals gains (i.e., from the sale of assets held for one year or less) is the same as the rate you pay on wages and other "ordinary" income. However, with wider income ranges, you're less likely to move up from a lower capital gains tax bracket this year to a higher bracket next year – which, of course, is a good thing. For example, the income ranges should be significantly "wider" for 2023 than they have been lately (i.e., a wider gap between the lowest and highest amount of a particular income range). Since inflation is high, we're expecting more change to the income ranges for 2023 than we've seen in the recent past. SEE MORE The Inflation Reduction Act and Taxes: What You Should Know The new figures for the upcoming year are typically released in late October or early November – and, so far, that's when we expect the IRS to announce the 2023 long-term capital gains tax income brackets. What about 2023? The IRS updates the taxable income ranges each year to account for inflation. Here are the long-term capital gains taxable income thresholds for the 2022 tax year: 2022 Long-Term Capital Gains Tax Rate Thresholds The higher your income, the higher the rate. However, which one of those long-term capital gains rates – 0%, 15% or 20% – applies to you depends on your taxable income. Gains from the sale of stocks, mutual funds, and most other capital assets that you held for more than one year, which are considered long-term capital gains, are taxed at either a 0%, 15% or 20% rate. So don't forget to take that into consideration, too. Plus, as an additional warning, some people have to pay an extra surtax on top of the capital gains tax. And to get a sense of how much you ought to stash away for tax time (or for an estimated tax payment), check out the different capital gains tax rates below. Instead, put some of the profit aside for taxes. So don't run out and immediately spend all your earnings if you're lucky enough to score big on a hot stock tip. SEE MORE Capital Gains Tax 101: Basic Rules Investors and Others Need to Know One reason for the difficulty is that capital gains tax rates differ depending on your taxable income, how long you held the property, and the type of property you sold. But pinning down the exact amount of tax due on your gain can be a challenge. Here's a reminder for investors, collectors, homeowners, and others selling capital assets – you might owe capital gains tax on any profit from the sale. Picture of tax form for capital gains and losses Getty Images
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