What are the different forms of taxation for capital gains?

In New Hampshire, capital gains taxes take several forms. The most common ones are ordinary income tax, long-term capital gains tax, and short-term capital gains tax. Ordinary income tax is a tax imposed on income from investments, work, and other sources. Capital gains from selling stocks, bonds, homes, or other assets are included in ordinary income and taxed as such, usually at the same or lower rate as other income. Long-term capital gains tax is a tax imposed on profits from investments held for more than one year. Gains may be taxed at a rate lower than ordinary income tax. Short-term capital gains taxes are imposed on profits from investments held for less than one year. Gains may be taxed at a higher rate than ordinary income tax. Finally, qualified dividends are subject to special taxation. Qualified dividends are paid out by companies that are subject to U.S. income tax, and these dividends are taxed at a lower rate. These different forms of taxation for capital gains can be complex and vary from state to state. Therefore, it is important to consult with a qualified tax advisor to understand the taxes imposed on any capital gains or losses.

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What are the different forms of taxation for capital gains?

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