00:00On $100,000 of capital gains in the U.S., the tax depends entirely on how long you held the
00:06asset
00:06and your total taxable income. There's no single flat number. If held one year or less,
00:12short-term, the full $100,000 is taxed as ordinary income at your marginal rate,
00:17up to 37% federally in 2026, so tax could range roughly $10,000 to $37,000 depending on your
00:25bracket. If held over one year, long-term, you fall into the 0%, 15%, or 20% federal brackets
00:33based on 2026 IRS thresholds, Rev. Proc. 2025-32. 1. 0% rate. Taxable income up to $49,450,
00:46single, or $98,900, married filing jointly. A retiree or low-income filer could pay $0 federal
00:54tax on the gain if it fits under this ceiling. 2. 15% rate. Most common case, applying between
01:02roughly $49,451 to $545,500, single, or $98,901 to $613,700, MFJ. A $100,000 gain here costs
01:17about
01:17$15,000 federally. 3. 20% rate. Income above $545,500, single, or $613,700, MFJ, costing $20,000
01:31federally. If your modified adjusted gross income exceeds $200,000, single, or $250,000, MFJ,
01:40add the 3.8% net investment income tax, pushing effective rates to 18.8% or 23.8%, an
01:49extra $3,800
01:51on top. State taxes, 0% in Texas-Florida, up to 13.3% in California. Add further variation,
02:00and gains inside IRAs-401K. S are typically deferred or exempt. These 2026 figures aren't
02:08guaranteed to hold for future years since thresholds adjust annually for inflation.
02:13Practical Takeaway. Determine your holding period and total taxable income first. If you're near a
02:19bracket edge, timing the sale, e.g., deferring to a lower income year, can meaningfully cut the tax
02:25owed. Consult a tax professional for state-specific and individual circumstances. Finally, remember that
02:32everything we discussed today is for educational purposes only and does not constitute financial
02:37advice. Good luck to everyone and see you in the next video.
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