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Make Expiring Tax Cuts Work for You

Know What Changes Are Coming in 2013 & How You'll Be Affected

Capital Gains Tax Rates

What's going on: A capital gain is the income you earn when you sell an asset that has increased in value, such as stocks or real estate. The Bush-era tax cuts reduced the tax rate on this kind of income to 15 percent (mostly -- there are a few exceptions). If the cuts are allowed to expire, the top rate on most capital gains will rise to 20 percent. 

How you can prepare: As with regular earnings, it may make sense to take capital gains this year rather than next. If you were considering cashing out some stocks or selling a property, ask a tax professional if this year might be the time to do it.

 

  • Sarah Shemkus

    Sarah Shemkus is an award-winning freelance journalist, marketing enthusiast, accomplished baker, occasional globetrotter and total nerd (with a particular fondness for spreadsheets). Most recently, she reported on business and real estate … Read more...