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Updated over 1 year ago,
How does capital gains tax affect my W2 income taxation?
I make 350K a year W2, so I'm paying 20% capital gains tax PLUS the surcharge of 3.8% for Obamacare for selling a long term rental I've owned for a few years. But how does the capital gains affect my W2 income taxation? Will I be taxed differently on W2 income? Slightly higher tax bracket if the capital gains are tacked on to my W2 income? But I don't pay taxes AGAIN based on my W2 tax rate on the capital gains right? From what I read, there is no effect on my other taxes on my W2 tax situation by paying capital gains taxes, is that correct?