Question 1173407
not sure if this is correct, but .....


if 45,000 was not capital gains, then it would be taxed as ordinary income at 26% = 11,700


if 45,000 was capital gains, then it would be taxed as capital gains at 15% = 6,750.


the savings would be 11,700 - 6,750 = 4,950


here's a reference that i think might help.


<a href = "https://www.investopedia.com/ask/answers/052015/what-difference-between-income-tax-and-capital-gains-tax.asp" target = "_blank">https://www.investopedia.com/ask/answers/052015/what-difference-between-income-tax-and-capital-gains-tax.asp</a>


the general idea, as i see it.....


if the asset is held less than a year, then it is taxed as ordinary income.
if the asset is held more than a year, then it is taxed as capital gains.