What a useful graphic we have here. Mint.com has created a graphic in order to summarize the various aspects of capital gains (and capital losses). They have done so with an incredible attention to detail, leaving no stone unturned. So, what is a capital gain you ask (if you haven’t asked, someone has asked for you.) According to the graphic, a capital gain is the profit that you gain when you sell a capital asset that you own, such as a stock, a bond, a piece of real estate, or a website. On the other hand, when you sell a capital asset for less than the price you bought it for you, you incur a capital loss. It’s important to understand the capital gains and losses apply to both businesses and individuals.
Ok, so what is a capital asset precisely? A capital asset is anything you own, including real estate, securities, furniture, precious metals, stamp and coin collections, jewelery and gems, gold and silver, automobiles etc. etc.–you get the picture. Short term and long term capital gains have different tax rates. Capital gains are generally taxed at a lower rate than personal income, and in some cases capital gains can be offset by capital losses. Capital gains tax rates are determined based on the type of investment and the holding period.
Below is a listing of some of the tax rates for different capital assets:
Collectibles: max tax rate, 28%
Investment Securities: max tax rate, 35%
Real Estate: max tax rate, 25%
Qualified Small Business Stock: max tax rate, 28%
Now, let’s saddle up and go for a ride in the infographic grading valley.
A unique graphic, but I’m not blown away. I’ll tell you where the graphic needs a tad bit of work– at the bottom. Notice the wrong colors were chosen. I say this because you can’t even read the last few words in that extra chart section. That’s the weakest part of the graphic, and it has resulted in me giving it a point deduction.
Mint.com did a stand up job as usual by covering the topic in the best way possible. They didn’t get bogged down with technical details, and they didn’t make the information so basic that the graphic was valueless.
Overall, a very strong graphic.