function calculateTax() {
// 1. Get Elements
var pPriceEl = document.getElementById('purchasePrice');
var sPriceEl = document.getElementById('salePrice');
var pDateEl = document.getElementById('purchaseDate');
var sDateEl = document.getElementById('saleDate');
var incomeEl = document.getElementById('annualIncome');
var statusEl = document.getElementById('filingStatus');
var resultBox = document.getElementById('resultBox');
var errorMsg = document.getElementById('errorMsg');
var dispGain = document.getElementById('displayGain');
var dispPeriod = document.getElementById('displayPeriod');
var dispType = document.getElementById('displayTaxType');
var dispRate = document.getElementById('displayRate');
var dispTax = document.getElementById('displayTaxOwed');
var dispNet = document.getElementById('displayNet');
// 2. Parse Values
var buyPrice = parseFloat(pPriceEl.value);
var sellPrice = parseFloat(sPriceEl.value);
var income = parseFloat(incomeEl.value);
var buyDateStr = pDateEl.value;
var sellDateStr = sDateEl.value;
var status = statusEl.value;
// 3. Validation
if (isNaN(buyPrice) || isNaN(sellPrice) || isNaN(income) || !buyDateStr || !sellDateStr) {
errorMsg.style.display = 'block';
resultBox.style.display = 'none';
return;
} else {
errorMsg.style.display = 'none';
}
// 4. Calculate Gain
var gain = sellPrice – buyPrice;
// 5. Calculate Holding Period
var bDate = new Date(buyDateStr);
var sDate = new Date(sellDateStr);
// Check for invalid dates
if (sDate 1 year. So if bought Jan 1 2023, Sold Jan 2 2024 is Long Term.
// 1 year in milliseconds approx 31536000000 (non-leap).
// Logic: compare year/month/day
var isLongTerm = false;
var oneYearLater = new Date(bDate);
oneYearLater.setFullYear(oneYearLater.getFullYear() + 1);
if (sDate > oneYearLater) {
isLongTerm = true;
}
// 6. Calculate Tax Rate based on 2024 Brackets
var taxRate = 0;
var taxTypeStr = "";
if (gain <= 0) {
// Loss – no tax
taxRate = 0;
taxTypeStr = "Capital Loss";
} else {
if (isLongTerm) {
taxTypeStr = "Long Term (Preferential Rates)";
// 2024 Long Term Capital Gains Brackets
// Based on filing status and Taxable Income (Income + Gain technically affects bracket, but we use simplified marginal logic here based on base income)
// Note: For strict accuracy, gain sits 'on top' of income.
// We will simplify by checking where the income falls.
if (status === 'single') {
if (income <= 47025) taxRate = 0;
else if (income <= 518900) taxRate = 0.15;
else taxRate = 0.20;
} else if (status === 'married') {
if (income <= 94050) taxRate = 0;
else if (income <= 583750) taxRate = 0.15;
else taxRate = 0.20;
} else if (status === 'head') {
if (income <= 63000) taxRate = 0;
else if (income <= 551350) taxRate = 0.15;
else taxRate = 0.20;
}
} else {
taxTypeStr = "Short Term (Ordinary Income Rates)";
// 2024 Ordinary Income Brackets (Simplified Marginal Rate Estimation)
// This is a rough estimate of the marginal rate the gain would be taxed at.
if (status === 'single') {
if (income <= 11600) taxRate = 0.10;
else if (income <= 47150) taxRate = 0.12;
else if (income <= 100525) taxRate = 0.22;
else if (income <= 191950) taxRate = 0.24;
else if (income <= 243725) taxRate = 0.32;
else if (income <= 609350) taxRate = 0.35;
else taxRate = 0.37;
} else if (status === 'married') {
if (income <= 23200) taxRate = 0.10;
else if (income <= 94300) taxRate = 0.12;
else if (income <= 201050) taxRate = 0.22;
else if (income <= 383900) taxRate = 0.24;
else if (income <= 487450) taxRate = 0.32;
else if (income <= 731200) taxRate = 0.35;
else taxRate = 0.37;
} else if (status === 'head') {
if (income <= 16550) taxRate = 0.10;
else if (income <= 63100) taxRate = 0.12;
else if (income <= 100500) taxRate = 0.22;
else if (income <= 191950) taxRate = 0.24;
else if (income <= 243700) taxRate = 0.32;
else if (income 0) {
taxAmount = gain * taxRate;
}
var netProfit = gain – taxAmount;
// 8. Update UI
dispGain.innerText = "$" + gain.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Format period
var years = Math.floor(daysHeld / 365);
var remainderDays = Math.floor(daysHeld % 365);
dispPeriod.innerText = years + " Years, " + remainderDays + " Days";
dispType.innerText = taxTypeStr;
dispRate.innerText = (taxRate * 100).toFixed(1) + "%";
dispTax.innerText = "$" + taxAmount.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
dispNet.innerText = "$" + netProfit.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Change color for loss
if (gain < 0) {
dispGain.style.color = '#c0392b';
dispNet.style.color = '#c0392b';
} else {
dispGain.style.color = '#2c3e50';
dispNet.style.color = '#27ae60';
}
resultBox.style.display = 'block';
}
Understanding Capital Gains Tax in 2024
Calculating your potential tax liability on investments is crucial for effective financial planning. Our Capital Gains Tax Calculator helps investors estimate the federal taxes owed when selling assets like stocks, real estate, or cryptocurrencies.
What are Capital Gains?
A "capital gain" refers to the profit realized when you sell a capital asset for a price higher than its original purchase price. If you sell the asset for less than you bought it, it is considered a capital loss. The Internal Revenue Service (IRS) taxes these profits differently depending on how long you held the asset.
Short-Term vs. Long-Term Holdings
The duration for which you hold an asset is the primary factor in determining your tax rate:
Short-Term Capital Gains: Assets held for one year or less. These are taxed as ordinary income, meaning they are subject to your standard federal income tax bracket (ranging from 10% to 37% in 2024).
Long-Term Capital Gains: Assets held for more than one year. These benefit from preferential tax rates, which are typically significantly lower than standard income tax rates (0%, 15%, or 20%).
2024 Long-Term Capital Gains Tax Rates
For the 2024 tax year, the long-term capital gains tax rates rely on your taxable income and filing status. Below is a general breakdown:
Single Filers
0% Rate: Income up to $47,025
15% Rate: Income between $47,026 and $518,900
20% Rate: Income over $518,900
Married Filing Jointly
0% Rate: Income up to $94,050
15% Rate: Income between $94,051 and $583,750
20% Rate: Income over $583,750
Net Investment Income Tax (NIIT)
High-income earners should also be aware of the Net Investment Income Tax (NIIT). This is an additional 3.8% tax applied to investment income for individuals with a modified adjusted gross income (MAGI) above certain thresholds (e.g., $200,000 for single filers and $250,000 for married couples filing jointly). This calculator provides a base estimate for federal capital gains and does not currently include the NIIT surcharge.
How to Minimize Capital Gains Tax
Strategies to reduce your tax burden include holding assets for over a year to qualify for long-term rates, utilizing tax-advantaged accounts like IRAs or 401(k)s, and employing tax-loss harvesting—selling underperforming assets to offset gains realized elsewhere.