Hi All,
I have a few confusions/questions regarding Capital Gains Tax.
My understanding of the tax is that it applies to any stock, bond, mutual fund, index fund, etc that you sell for a profit. So, if I buy 10 shares of 'Random Company Inc.' at $10 a share and sell 2 of those shares 3 years later when they are worth $14, I'd pay Capital Gains Tax on the gains: $8 ($4 increase in value/share, and I sold 2 shares).
Is that correct?
Now, I believe that if an individual or couple filing jointly is exempt from CG Tax if in the 15% tax bracket. Is this the case? If not, what amount of tax is paid in the Capital Gains?
I just want to make sure I have the correct info in the (hopefully unlikely) event that I would need to tap into my taxable accounts.