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I wonder what the tax rate on his windfall, 50%?
by dannylandau 7y ago
I wonder what the tax rate on his windfall, 50%?
- TylerE 7y agoTry 15%, at a maximum.
- djohnston 7y agogood old long term capital gains, although they were taxed on the way in if i understand these things correctly
- akavi 7y ago20%, you mean, for federal long term capital gains. Plus 3.8% for Net Investment Income Tax. Plus, he resides in CA, so tack on ~12% (he's making so much marginality doesn't really affect things) in state taxes. ~36% in total, which is a lower effective tax rate than many people here, but not quite as outrageous.
- gok 7y agoThere's actually another 1% in CA on income over $1 million in California, so it's 13.3% + 23.8% = 37.1%
- a-robinson 7y agoI'm not a tax lawyer, but 20% is the long-term capital gains rate for earnings greater than $400k or so - https://www.nerdwallet.com/blog/taxes/capital-gains-tax-rates/ https://www.nerdwallet.com/blog/taxes/capital-gains-tax-rate... That page also calls out a "net investment income tax" that sounds like it would add an additional 3.8% on such large capital gains.
- kyleblarson 7y agoLong term cap gains since he certainly had an 83b letter in place so it'll be 23.8%. edit: Plus whatever CA state LTCG tax exists if he is a CA resident.