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She has no other capital gains or losses. Since 2003 qualified dividends have also been taxed at the lower rates.
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Maree declares a capital gain of 500 in her tax return.
. She will pay tax on this gain at her individual income tax rate. For most of the history of the income tax long-term capital gains have been taxed at lower rates than ordinary income figure 1. She owns the shares for 6 months and sells them for 5500.
The maximum long-term capital gains and ordinary income tax rates were equal in 1988 through 1990. MAXIMUM TAX RATE ON CAPITAL GAINS.
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