Capital Income & Investment Taxation – United States

Assets held 1 year or less. Taxed as ordinary income at your marginal rate. Includes short-term stock trades, crypto held less than a year, and flipped property.

Single filers with taxable income up to $49,450 ($98,900 joint) pay 0% on long-term capital gains. Powerful tax planning opportunity for lower income years.

Most common rate for long-term capital gains. Applies to single filers with taxable income between $49,451 and $553,850.

Highest long-term rate. Applies to single filers with taxable income exceeding $553,850. Qualified dividends follow same rate structure.

Long-term gains from collectibles (art, coins, antiques, precious metals) taxed at maximum 28%. Higher than standard long-term rates.

Additional 3.8% tax on net investment income (interest, dividends, capital gains, rental income) for modified AGI above $200,000 single ($250,000 joint). Can bring effective top rate to 23.8%.

Selling, trading, or spending crypto triggers capital gains. Short-term (≤1 year): ordinary rates 10-37%. Long-term (>1 year): preferential rates 0%, 15%, or 20%.

Mining rewards, staking income, airdrops, and crypto earned as payment are taxed as ordinary income at fair market value when received.

Starting 2026, all US crypto exchanges must report capital gains and losses to the IRS via Form 1099-DA. Significantly increases IRS visibility into crypto transactions.

Crypto losses can offset capital gains. Up to $3,000 of excess losses can offset ordinary income per year. Remaining losses carry forward indefinitely. Wash sale rules may apply in future.

Dividends from US corporations and qualified foreign corporations held 60+ days. Taxed at preferential long-term capital gains rates. Most common US stock dividends qualify.

Dividends that don't meet holding period or source requirements. Taxed as ordinary income. Includes REITs, most foreign dividends, and money market dividends.

Federal estate tax exemption is $15 million per individual in 2026 ($30 million for married couples via portability). Made permanent by OBBBA. Only estates exceeding this threshold are taxed.

Progressive rates from 18-40% on taxable estate value above the exemption. Top 40% rate applies to amounts over $1 million above exemption.

Give up to $19,000 per person per year ($38,000 per couple) without filing a gift tax return. Amounts above this count against your lifetime $15M exemption.

The US has no federal wealth tax on net worth. No requirement to report total assets for wealth tax purposes. Only income and realized gains are taxed.