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Updated almost 17 years ago,
Capital Gains tax rate
I'm a bit confused about how capital gains are taxed. I sold a parcel of vacant land in 2007 and I'm now calculating the gains, which are around $12,000.
I was under the impression the gains are taxed at a lower rate than my regular income tax. However, when I completed the Form 1040 Schedule D it told me to enter the total gains (basically the 1099-S Gross Proceeds minus my costs of selling the land) on my Form 1040. The 1040 adds the gains into my regular income and it all gets taxed at the same tax rate (32%).
Am I doing this correctly?