What is the name of your state? California
Hi. I'm confused on the mechanics of taxation on Long Term Capital Gains. If I understand correctly, LT Cap Gains should be taxed at 15% (I'm in a 28% Bracket). But I don't understand on the flow of the tax forms how this is done. LTCG is reported on Part 2 of Schedule D, and then rolled over to Line 16 of the 1040, and then it rolls up to Total Income (1040 Line 37) and ultimately to my AGI which serves as my taxable income...as near as I can tell, this is then taxed at my 28% just like all my other income. So my question is where (or how) is the LTCG tax rate mitigated to the lower rate than my general tax rate? Appreciate your help.
Hi. I'm confused on the mechanics of taxation on Long Term Capital Gains. If I understand correctly, LT Cap Gains should be taxed at 15% (I'm in a 28% Bracket). But I don't understand on the flow of the tax forms how this is done. LTCG is reported on Part 2 of Schedule D, and then rolled over to Line 16 of the 1040, and then it rolls up to Total Income (1040 Line 37) and ultimately to my AGI which serves as my taxable income...as near as I can tell, this is then taxed at my 28% just like all my other income. So my question is where (or how) is the LTCG tax rate mitigated to the lower rate than my general tax rate? Appreciate your help.