What is the tax rate for long-term capital gains?

In California, the tax rate for long-term capital gains is determined by your income. For those with a low income (under $36,750), the tax rate is 0%. However, for those with a higher income, the rate increases to 10.3% for income between $36,751 and $488,850; 11.3% for income between $488,851 and $774,200, and 12.3% for income over $774,200. Long-term capital gains are the profits gained from investments held for more than one year. This includes stocks, bonds, mutual funds, real estate, and other investments. When the asset is sold, investors must pay a tax on the gains from the sale. The tax rate can be lower than the normal income tax rate because of the time value of money. In addition, California has a “capital gains deduction” which allows people to reduce the amount of their capital gains that are subject to taxation. This deduction is based on the length of time the asset was held, with the maximum deduction available for assets held for more than five years. The deduction is only available to those making less than $250,000 in income per year. Overall, the tax rate for long-term capital gains in California varies depending on your income and the length of time the asset was held. However, many investors in California can benefit from the capital gains deduction and lower-than-normal income tax rates on long-term capital gains.

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