FAQs
For your convenience, We have compiled a list of questions often asked by new clients. If your questions are not answered here or you need further information, then please contact us via e-mail or via phone at 603.382.8867 and we’ll be happy to help you. We look forward to hearing from you soon.
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For Individuals
16. What are the Capital Gains and Qualified Dividends Rules?
- Your maximum tax rate on most long-term capital gains is 15%, while you'll pay taxes at ordinary income rates on short-term gains. The 15% rate drops to 5% if you're in the lower two tax brackets for ordinary income.
- The minimum holding period for long-term treatment is 12 months.
- You'll pay tax at 15% (or 5%) on "qualifying" dividend income. Dividends from most U.S.-traded stocks and mutual funds qualify for these rates.
- Interest on bank accounts and bonds is taxed as ordinary income. Dividends from bond funds or money market funds also count as ordinary income.
- You can offset up to $3,000 of net losses against ordinary income (such as wages), and you can carry over any excess to future years.
- If you're planning to sell a stock, remember to include any reinvested dividends in your cost basis. This can reduce the size of any gain or increase a tax loss.
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