Capital Gains Taxes in 2025 — What Investors & Small Business Owners Need to Know
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Meta Title (≤60 characters): 2025 Capital Gains Tax Rates Explained
Meta Description (≤160 characters): Target Keywords: capital gains tax 2025, IRS capital gains rates, long-term vs short-term capital gains
Selling stocks, real estate, or even your business can trigger capital gains taxes—and knowing the rules can mean the difference between keeping thousands or handing them to the IRS.
For 2025, the capital gains rates are steady, but the income thresholds have shifted upward with inflation adjustments. That makes this a crucial year for investors, landlords, and small business owners to plan ahead.
What Changed in 2025
Rates stayed the same: 0%, 15%, or 20% depending on taxable income and filing status.
Income thresholds increased for inflation:
0% rate:
Single: Up to $47,025
Married Filing Jointly: Up to $94,050
15% rate:
Single: $47,026 – $518,900
MFJ: $94,051 – $583,750
20% rate:
Single: Over $518,900
MFJ: Over $583,750
Source: IRS Capital Gains Rates
How Capital Gains Are Taxed
Short-Term Capital Gains
Assets held less than one year.
Taxed as ordinary income (your regular income tax bracket).
Long-Term Capital Gains
Assets held one year or longer.
Taxed at favorable rates: 0%, 15%, or 20%.
Special Cases:
Collectibles (28% maximum rate).
Unrecaptured Section 1250 gains on real estate depreciation (25% max).
Qualified small business stock (QSBS) exclusions under Section 1202.
Why It Matters
Investors: Proper timing of stock or crypto sales can reduce your tax hit.
Real Estate Owners: Rental property sales can trigger long-term capital gains and depreciation recapture.
Small Business Owners: Selling your business or assets often involves capital gains treatment—planning early is essential.
High-Income Taxpayers: May also face the 3.8% Net Investment Income Tax (NIIT) on top of capital gains if MAGI > $200K (single) / $250K (MFJ).
Smart Planning Tips for 2025
Hold assets at least a year to qualify for long-term rates.
Harvest losses—offset gains with losing investments to reduce taxable income.
Time sales strategically—spreading large sales across tax years may lower rates.
Consider 1031 exchanges for real estate to defer gains.
Plan for business exits early—structure sales to maximize long-term treatment.
Capital gains taxes can feel like a minefield—but with smart planning, you can keep more of your hard-earned gains. Whether you’re selling stocks, property, or even your business, 2025 offers opportunities to plan smarter.
Want help creating a capital gains tax strategy tailored to your situation? We’re ready to help! Book a Consultation.
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1. What are the 2025 capital gains rates?
0%, 15%, and 20%, based on income thresholds.2. How do I qualify for the 0% rate?
If your taxable income is under $47,025 (single) or $94,050 (MFJ).3. Do real estate sales qualify for long-term rates?
Yes, if held longer than a year. But depreciation recapture is taxed at up to 25%.4. What if I sell crypto?
Crypto is treated as property—same rules as stocks (short-term vs. long-term).5. Do I owe extra if I’m a high earner?
Yes—you may also owe the 3.8% Net Investment Income Tax (NIIT).
Join the 2025 Tax Season Waitlist today: tbtxsolutions.com/join
