Before the recent election, it was possible that capital gains tax rates might go up for some taxpayers in the near future. Now, with the Oval Office and both houses of the U.S. Congress soon to be in Republican hands, there’s a significant chance rates will be reduced. Currently, long-term gains (on investments held more than a year) are taxed at 0%, 15% or 20%, depending on income. Although Trump hasn’t specified his capital gains tax goals, he has advocated for lower income tax rates in general. Also, some conservatives have proposed a 15% long-term capital gains rate and indexing the tax bases in investments for inflation, which generally would reduce tax liability.
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