Estimated tax for capital gains on large, one-time sale of index mutual fund to fund home purchase
How is tax calculated on mutual fund sales?
How to Calculate the Payable Tax against Long Term Capital Gains on Mutual Funds?
- Full value of consideration: Rs. 3 Lakh.
- Cost inflation index or CII for the mentioned year – 280 , hence the indexed cost of acquisition is Rs – 50,000 X (280/100) = Rs. 1,40,000.
- The total taxable gain is Rs. 3 Lakh – Rs. 1,40,000 = Rs.
Is long term capital gain on mutual fund taxable?
Unlisted equity funds – Long-term capital gains on unlisted equity funds are taxed at 20% (surcharge and cess as applicable) with the benefit of indexation.
Long-term Capital Gain Tax on Mutual Funds.
| Particulars | Applicable tax rate |
|---|---|
| Equity-oriented hybrid funds | 10% tax rate on the amount exceeding Rs. 1 Lakh without indexation |
How do I avoid capital gains tax on mutual funds?
6 quick tips to minimize the tax on mutual funds
- Wait as long as you can to sell. …
- Buy mutual fund shares through your traditional IRA or Roth IRA. …
- Buy mutual fund shares through your 401(k) account. …
- Know what kinds of investments the fund makes. …
- Use tax-loss harvesting. …
- See a tax professional.
What is the long-term capital gain tax rate for 2021?
2021 Long-Term Capital Gains Tax Rates
| Tax Rate | 0% | 15% |
|---|---|---|
| Filing Status | Taxable Income | |
| Single | Up to $40,400 | $40,401 to $445,850 |
| Head of household | Up to $54,100 | $54,101 to $473,750 |
| Married filing jointly | Up to $80,800 | $80,801 to $501,600 |
What is the 2022 capital gains tax rate?
2022 Capital Gains Tax Rate Thresholds
| Capital Gains Tax Rate | Taxable Income (Single) | Taxable Income (Head of Household) |
|---|---|---|
| 0% | Up to $41,675 | Up to $55,800 |
| 15% | $41,675 to $459,750 | $55,800 to $488,500 |
| 20% | Over $459,750 | Over $488,500 |