FYI US Capital gains taxes for OWCP investment gains. Unfortunately Uncle Sam is going to take a piece of the pie so all should know the tax ramifications when you decide to cash in. How big the pie piece is depends on how long you think you should hold. Of course this is true for any other MJ winners you may have picked.......
Long-term capital gains (LTCGs) are a separate rate you pay on investment property you have held for at least 1 year + 1 day. While they are taxed separately, the rate is dependent on your ordinary income tax bracket. If your tax bracket including the gain is 10% or 15%, then your LTCG rate is zero. If your gains push you into the 25%, 28%, 33%, or 35% tax bracket, you will pay 15% on the gains. Beyond that, you will pay the top LTCG rate of 20%.
Short-term capital gains are taxed as ordinary income, period. If a stock is sold within one year of its purchase, the gain is characterized as short-term and taxed at the same marginal rate as the taxpayer’s other ordinary income. Below are the tax rates you would be taxed at.
Single
Taxable Income Tax Rate
$0—$9,275 10%
$9,276—$37,650 $927.50 plus 15% of the amount over $9,275
$37,651—$91,150 $5,183.75 plus 25% of the amount over $37,650
$91,151—$190,150 $18,558.75 plus 28% of the amount over $91,150
$190,151—$ 413,350 $46,278.75 plus 33% of the amount over $190,150
$413,351—$415,050 $119,934.75 plus 35% of the amount over $413,350
$415,051 or more $120,529.75 plus 39.6% of the amount over $415,050
Married Filing Jointly or Qualifying Widow(er)
Taxable Income Tax Rate
$0—$18,550 10%
$18,551—$75,300 $1,855 plus 15% of the amount over $18,550
$75,301—$151,900 $10,367.50 plus 25% of the amount over $75,300
$151,901—$231,450 $29,517.50 plus 28% of the amount over $151,900
$231,451—$413,350 $51,791.50 plus 33% of the amount over $231,450
$413,351—$466,950 $111,818.50 plus 35% of the amount over $413,350
$466,951 or more $130,578.50 plus 39.6% of the amount over $466,950
