Since January 1, 2013, taxpayers with gross incomes of $250,000 or more have seen a significant increase in the rate at which their long-term capital gains are taxed. The American Taxpayer Relief Act of 2012 (Pub L 112–240, 126 Stat 2313) increased the rate from 15 percent to 20 percent and imposed a net investment income tax of 3.8 percent, bringing the total current rate on long-term capital gains to 23.8 percent.

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Reprinted from CEB.com (Summer 2016)