3 ms·
Not quite true. Qualified dividends tax rate are 15% nowadays, while capital gains are 20% (or 23.8% if you make a lot of income). However, you can defer the c
by nilsbunger 8y ago
Not quite true. Qualified dividends tax rate are 15% nowadays, while capital gains are 20% (or 23.8% if you make a lot of income).
However, you can defer the capital gains tax (by not selling), thus allowing that money to compound and work for you.
- loeg 8y agoI don't know where you're getting that from. Qualified dividends are taxed as long-term capital gains. They have the exact same 0-23.8% brackets as LTCG do. Wikipedia: https://en.wikipedia.org/wiki/Qualified_dividend https://en.wikipedia.org/wiki/Qualified_dividend (perhaps not a "legitimate" source, but at least a jumping off point for more information).
- nilsbunger 8y agothanks, I was definitely wrong. Not sure where I got that from either
- loeg 8y agoThe 15% LTCG bracket is so wide, especially prior to NIIT (the 3.8% extra for high earners), that you could be forgiven for assuming everyone paid 15% on LTCG income!
- deleted 8y ago[deleted]