What tax rates apply to short-term and long-term capital gains?
Short-term gains are generally taxed at ordinary income tax rates, which range from 10% to 35% depending on your adjusted gross income. Long-term gains are generally taxed at a maximum rate of 15%. For investors in tax brackets below 25%, long-term gains are taxed at a 0% rate in 2009. Can I calculate gains/losses using Form 1099-B alone? No. This form does not provide sufficient information to calculate a gain or loss on the sale or exchange of shares. Account owners will need the original cost per share (cost basis) and date of each purchase to determine gain or loss information. You will find this information on your confirmation statements. How do I calculate my cost basis when I sell or exchange shares? When you sell or exchange shares from a mutual fund, you must calculate and report a gain or loss on Form 1040 Schedule D. In general, your cost basis (the original cost of the investment plus all reinvested distributions) is subtracted from your sales proceeds to determine any cap
