Bonds are divided into 2 classes: tax-exempt and taxable. While their capital gains are constantly taxable, the interest they make might not be. baona/Getty Images .Bonds and mutual fund create 2 kinds of earnings: interest and capital gains.Interest earnings from a bond might be tax-exempt or taxable, depending upon the kind of bond.Capital gains from…
Dividend income is taxable, but the rate varies, depending on how long you've owned the stock shares that pay the dividends. Tempura/Getty Images Dividends from stocks or funds are taxable income, whether you receive them or reinvest them. Qualified dividends are taxed at lower capital gains rates; unqualified dividends as ordinary income. Putting dividend-paying stocks…
The capital gains tax rate might be the very same or less than your normal earnings tax rate, depending upon the length of time you'' ve owned your financial investments. Keith Srakocic/Associated Press .The capital gains tax rate uses to revenues on financial investments.It’s a long-lasting capital gain and taxed at a lowered rate if…