Capital Gains Tax Rate Question(s)

Andrewjm
Andrewjm Member Posts: 3 Newcomer
in Income

Hi

I am sure that these questions have been asked, however, I've seen different websites and calculators with different answers.
I want to sell Long-Term Investments from my regular (non-Roth) account this year (2025). I will have NO income to report for this year.

So...

  1. What will my Federal capital gains tax rate be?
    1a) What will my Rhode Island capital gains tax rate be?
  2. I think that the final tax rate is determined by Income + Capital Gains$ sold for the year (2025)
    I do not know if this is correct. Is it?
    Again, I will have no income to report this year
  3. I read that I can sell up to $48,000 in Long-Term Capital Gains tax-free at the Federal level.
    No idea if this is accurate information. It seems wrong, but I don't know.
  4. What is the RI tax rate for Long-Term Capital Gains$ sold (since I would also not be showing income)? Is there a ceiling amount that I can sell tax-free?

    Obviously, I should talk directly to an RI-based accountant, but I am traveling overseas for a few months. I would appreciate any known, accurate information that I can also verify.

    Thank you
    Andrew

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Answers

  • DaveT
    DaveT Member Posts: 50 Level 5

    This article may be helpful.

    https://learn.valur.com/rhode-island-capital-gains-tax-explained/

  • JMSSGV
    JMSSGV Member Posts: 208

    1. I think that the final tax rate is determined by Income + Capital Gains$ sold for the year (2025)
      I do not know if this is correct. Is it?
      Again, I will have no income to report this year

    Sort of, but the better way to look at is that your capital gains ARE income, not added to your income. So you DO have taxable income.

    For a single person, the tax rate for 2025 on long-term capital gains is 0% if your taxable income is $48,350 or lower. There are many capital gains tax calculators available online if you want to verify this.

  • Andrewjm
    Andrewjm Member Posts: 3 Newcomer
    edited March 31

    Thank you for the replies.
    Another question. If I am looking at my portfolio of mutual funds (12) in my regular taxable account on Schwab does the
    Market Value - Cost Basis = Capital Gains taxable income
    For example:
    $160,966.85 - $136,474.41 = $24,492.44 taxable capital gains income

    And, according to DaveT's information, I would only pay 3.75% in Rhode Island taxes (no Federal taxes because it is below $48,350 (single filer).

    Let me add that I haven't been buying/selling/trading from that account. It's been sitting there since it transferred over from TDA to Schwab. All dividends reinvested.

    Sorry for the confusion and lack of knowledge
    Thank you again
    Andrew

  • DaveT
    DaveT Member Posts: 50 Level 5
    https://community.freetaxusa.com/discussion/comment/5096#Comment_5096

    You would only incur a capital gains tax liability on sold assets. If you didn't sell anything, there is no realized capital gain to tax.

  • Andrewjm
    Andrewjm Member Posts: 3 Newcomer

    Hi

    Yes, thank you
    So, for the funds/information example above
    I will only pay the 3.75% RI Capital Gains Tax?

    I am assuming that the cost-basis I see on my Schwab account is accurate. The rep I just spoke to said that it is accurate for tax reporting. I hope so.

    Thank you again
    Andrew

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