I don't know jack about taxes, except that I don't have any "taxable income" that I know of. My question is: Does capital gains tax fall under "taxable income"(income tax)? or is it a completely different type of tax.
i report everything on a sched c and i'm told its all ordinary income which would be the same for sched d's. not sure why you would ask if its taxable income...
i asked cause I just finished reading www.taxableincome.net and wondered if what I just learned about the income tax laws applied to trading income as well.
They're both taxable, it's the treatment for other tax items that's different. The difference between taxable and Capital Gains income is you don't have to pay self employment tax on Capital Gains. Also if you have long term Cap gains, you only pay 20% tax rather then the highest bracket % you fall into for short term cap gains. Also, you can only offset 3K of cap losses against taxable income. Where you can offset all your cap losses to the extent of cap gains plus 3K.