For single folks, you can benefit from the zero percent capital gains rate if you have an income below $40,000 in 2020.

An IRS publication says “Some or all net capital gain may be taxed at 0% if your taxable income is less than $78,750 ” – (which applies for Joint Filers).

A further benefit is an Exemption from Gains Tax on the Sale of Your Home ($500,000 for married couples and $250,000 – provided you lived in it for 2 years)

Capital Gain Tax Rates

The tax rate on most net capital gain is no higher than 15% for most individuals.

A capital gain rate of 15% applies if your taxable income is $78,750 or more but less than $434,550 for single; $488,850 for married filing jointly or qualifying widow(er); $461,700 for head of household, or $244,425 for married filing separately.

However, a net capital gain tax rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.

For C Corporations there is No Preferential Tax Treatment for Long-term Capital Gains

Unlike individuals, who enjoy preferential tax treatment for long-term capital gains, C corporations do not get preferential tax treatment for long-term capital gains. Capital gains are simply added to the corporation’s ordinary income along with other income items and taxed at the corporate tax rates.

Tax Rate on Net Capital Gain Effective after 2017, corporate taxable income is subject to a flat 21% rate. Net capital gains included in taxable income are subject to the 21% rate.