Capital Gains (2025)
Overview of long-term vs short-term gains, tax rates, netting rules, and planning strategies for HOH filers.
Long-Term vs Short-Term
Long-term capital gains apply to assets held >1 year and are taxed at preferential rates; short-term gains (≤1 year) are taxed at ordinary income rates.
2025 Typical Long-Term Rates (illustrative)
Long-term rates commonly are 0%, 15%, or 20% depending on taxable income. Use 2025 tax brackets and NIIT thresholds for planning.
Netting and Losses
Net capital gains against capital losses. Excess net capital losses up to $3,000 ($1,500 MFS) can offset ordinary income; carry forward remaining losses.