Capital Gains & Qualified Dividends

Tax Rates on Assets Held More Than 12 Months

Capital Gains and Qualified Dividends
SHORT TERM CAPITAL GAINS ARE TAXED AT REGULAR ORDINARY RATES.
2012 - Tax Rates on Assets Held More Than 12 Months
Taxpayers in 10% or 15% Bracket0%
Other Brackets15%
Un-recaptured Gain or Real Estate (Sec. 1250 Gain)25%
Collectibles (Coins, Art, Antiques)28%

Credit for Tax on Undistributed Capital Gain

You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. If the mutual fund or REIT paid a tax on capital gain, you are allowed a credit for the tax since it is considered paid by you. The mutual fund or REIT will send you form 2439 showing your share of the undistributed capital gains and the tax paid, if any. You can take the credit for the tax paid by entering the amount on line 71 of form 1040 and checking box A. Attach copy B of form 2439 with your tax return.
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