4 ms·
> Income tax = tax on income, from whatever source (i.e., work, investments, gambling/lottery, prizes, illegal sources, etc.) I think that would be a good thin
by artsrc 14y ago
> Income tax = tax on income, from whatever source (i.e., work, investments, gambling/lottery, prizes, illegal sources, etc.)
I think that would be a good thing, but a lot of income from investments is categorized as capital gain, and this is not counted the same way as other income.
- rprasad 14y agoNo, capital gain income is still considered income for income tax purposes. Only certain types of capital gain are eligible for the special capital gains rates, and only long-term capital gain is eligible for the lowest rates (i.e., 15%). For example, collectibles are taxed at a 28% rate, recapture income is taxed at a 25% rate, and short-term income is subject to the graduated ordinary-income tax scheme.