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Highest 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 t
by usaar333 8y ago
Highest 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.