I know that the long term capital gains tax rate is 20% for individuals in the US, but what is it for companies? If a company is selling a certain assets (let's say, a machine), would it also pay the 20% rate?
Sorry this isn't a great question, I'm not an American and I just need a quick confirmation on this for a report I'm writing. Thank you so much guys!
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I believe it's the same, but depreciation may reduce/eliminate any tax gains.
Thank you so much!
Its 21% or the current corporate tax rate. No preferential capital gains rate for corporations at the moment
With LTCG rate proposed to go up to nearly 40%, how do you see that affecting companies?
Dunno. Is a change in the corporate capital gains rate on the table? Seems unlikely to me that they'd make the corporate capital gains rate higher than the current corporate rate
I was reading into the Biden tax plan, apparently they wanna raise LTCG rate to 39.6%.
https://www.forbes.com/sites/taxnotes/2021/02/16/biden-wants-to-reform-…
To be honest, IG my main question is, when a company sells an asset, what tax does it pay on the asset? Regular corp income or CG?
There is no preferential treatment for capital gains for corporations at the moment. What you're looking at is reform to the personal income tax preference on LTCG. Corporations pay 21% on all income from whatever source derived. Again, don't know a lot about the tax reform bill thats on the table, but it seems highly unlikely that they would raise corporate tax on just LTCG
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