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The highest tax bracket in CA is nowhere near 80%. More like 50% (40% federal + 10% state). And appreciated stock held long-term is taxed at the Federal cap gai
by URSpider94 8y ago
The highest tax bracket in CA is nowhere near 80%. More like 50% (40% federal + 10% state). And appreciated stock held long-term is taxed at the Federal cap gains rate of 20%, so the max is closer to 30%.
- usaar333 8y agoHighest bracket for ordinary investment income is 54.1%. 37% federal income, 13.3% state, 3.8% federal net investment. California uses same tax rate for long term cap gains. So highest long term rate is 37% (20% federal, 13.3% California, 3.8% net investment). If you sell and keep proceeds of $0 basis stock, you get $0.63 per $1. If you donate $1 of said stock, you get up to a $0.54 tax deduction. In this extreme example, there's only a 16% gain by selling vs donating.