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Updated almost 6 years ago,
Calculating taxes with capital gains tax
Hello
On a high level view how is capital gains calculated in regards to taxes as well ordinary taxes. Do you first get salary from work for the year and make some standard deductions and then see what ordinary tax bracket your in which indicates the amount of taxes you pay. Then whatever tax bracket you fall into this determines which capita gain tax bracket you fall into which depending on the amount of capital gains for the year it can be some amount capital again and the rest of capital gains at a higher tax bracket and you might pay the net investment income tax and finally you add you ordinary tax amount plus the tax you need to pay on capital gains plus the nitt of 3.8% it's the total amount taxes you owe for the year. Is this correct?
Thanks,