Long- vs. Short-Term Capitol Gains

[Scott]

I'm considering selling some stock I just purchased through an employee
stock purchase program, but might hold on to it if there is a big
difference between long and short term capitol gains.

What exactly is the difference between short & long term?

Is cap. gains collected by feds? state (NH?)

What's the % difference between shory & long?

Thanks in advance.

--
Scott Thieret
Avid Technology (We do REAL video ;-)

[Thomas A. Russ]

In article <...> sc...@avid.com (Scott) writes:
> What exactly is the difference between short & long term?

Long term is a capital gain on an asset you held for more than 1 year.

> Is cap. gains collected by feds? state (NH?)

Yes, it is part of the federal income tax. I don't know about NH.

> What's the % difference between shory & long?

Depends on how much money you make. Long term capital gains are taxed
at either 0%, 15% or 28%, depending on your other income.

Short term capital gains are taxed at either 0%, 15%, 28%, 31%, 36%, or
39.3% depending on your other income.

Summary: If you are single, then your taxable income must be over
$56,550 for there to be any difference for federal tax purposes. If you
are married filing jointly, then your taxable income must be over
$94,250. [1995 income tax]. If your taxable income is below these
amounts it doesn't matter (in terms of taxes) whether the gain is long
or short term.

--
Thomas A. Russ, USC/Information Sciences Institute t...@isi.edu