How does Michigan treat capital gains?
Instead, it taxes all capital gains as ordinary income, using the same rates and brackets as the regular state income tax. Michigan is one of the states with a flat income tax rate, so no matter the amount of taxable ordinary income, the state tax rate will always be 4.25%.
Does a 70 year old pay capital gains tax?
The IRS allows no specific tax exemptions for senior citizens, either when it comes to income or capital gains. The closest you can come is contributing to a Roth IRA or Roth 401(k) with after-tax dollars, allowing you to make qualified withdrawals on a tax-free basis.
What is the capital gains tax on selling a house in Michigan?
Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0%. For taxable years beginning in 2024, the tax rate on most net capital gain is no higher than 15% for most individuals.
How long do you have to live in a house to avoid capital gains in Michigan?
You must wait at least two years to sell your house in order to qualify for the capital gains exclusion. However, even if you dont qualify for the exclusion you still can ordinarily pay the reduced tax rate levied on investment assets. This reduced rate is whats known as the long-term investment rate.
Which state does not tax capital gains?
AK, FL, NV, NH, SD, TN, TX, and WY have no state capital gains tax. AL, AZ, AK, DE, HI, IA, IN, KY, MD, MI, MO, MT, ND, NM, NY, OH, OR, PA, SC, VT, and WI either allow taxpayer to deduct their federal taxes from state taxable income, have local income taxes, or have special tax treatment of capital gains income.
