Calculate Your After-Tax Returns
Assumptions: 12% annual rate of return; 10-year hold
Calculations above are based on the highest federal gains rates of 20% and 37%, with a 3.8% net investment income tax that applies to certain circumstances, for long-term capital gains tax of 23.8% and short-term capital gains tax of 40.8%. Any profits on the sale of an asset held for 1 year or less is considered a short-term capital gain and is taxed at ordinary income rates. Assumes no state income tax.