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Alias Born 02/19/2009

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Thursday, 09/10/2009 3:37:00 PM

Thursday, September 10, 2009 3:37:00 PM

Post# of 585
I have a quick question about taxes on long-term capital gains. All publications I could find refer to the personal tax bracket, which determines the tax rate on those gains.
Is the personal tax bracket determined by the taxable income INCLUDING or EXCLUDING the long-term capital gains?
For example, if someone makes 50k (regular income) a year and is in the 10% bracket and got lucky by making a couple of million dollars long term capital gains in 2010 - is that a couple of millions of tax free income? Or do the capital gains increase the tax rate to 35% and therefore the tax rate on the capital gains is 15%?
Any idea anyone?
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