Discussion in 'Taxes and Accounting' started by Maverick2608, Oct 28, 2021.
For stocks, I thought -1 year was short-term capital gain, +1 year long-term capital gain?
Short term capital gain and ordinary income are the same rate.
Then why are they listed as two-different line items on the 1099? Fucking IRS inefficiencies!
Though short term capital gains and ordinary income are taxed at the same rate, "other things" apply to ordinary income... social security and medicare taxes, for example.
The US tax code is 70,000 pages (or is it 80,000 now?)... anything but "fair"... much of it HORSE SHIT... with special interest carve-outs, sadly.
I am happy to be wrong on this subject. Do you know whether the differentiation exists in Spain or Italy?
In Spain there was a system similar to the US (differentiation between more/less than one year holding) up until 2014 iirc, but currently everything is taxed as short-term gains rates, between 19% and 23% (the rates were lowered a few points when the law changed).
Just going to the PWC website I found this:
That's right, from 2021 a new bracket has been added for income above 200K, at 26%. Unfortunately tax codes change constantly (usually for the worse).
unless it's a Roth or back door Roth, in that case you owe no tax
But are you sure Spain does not tax trading income as business income if volume, frequency etc. surpasses a certain threshold (to be assessed subjectively by the tax authorities)?
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