H
Hank
My question is what happens to taxation of long-term capital gains and
qualified dividends right at the 15/25% marginal rate boundary?
Assume taxable income includes $10,000 of long-term gains and $10,000
of qualified dividends. The boundary for a single taxpayer is at
$34,500 for 2011 (the year of interest). Understood that if
taxable income is below that level, tax on the capital gains is zero,
and on the dividends is $500.
If the taxable income goes up to, say, $35,000, does the tax liability
on the gains and dividends step up to $1500 each?
Hank
qualified dividends right at the 15/25% marginal rate boundary?
Assume taxable income includes $10,000 of long-term gains and $10,000
of qualified dividends. The boundary for a single taxpayer is at
$34,500 for 2011 (the year of interest). Understood that if
taxable income is below that level, tax on the capital gains is zero,
and on the dividends is $500.
If the taxable income goes up to, say, $35,000, does the tax liability
on the gains and dividends step up to $1500 each?
Hank