SmartAsset has ranked U.S. counties by the average net capital gains reported in the Internal Revenue Service’s latest tax return data.
Highlighting net capital gains — the profits from selling assets such as stocks, real estate or businesses — is important, SmartAsset notes, as they are a key measure of investment success and regional wealth. These gains are realized only upon sale, and are taxable at preferential rates of 0%, 15% or 20% when they are held for a year or longer.
Other investment income, such as ordinary dividends and taxable interest, which are taxed at generally higher income tax rates, or tax-exempt interest, may offer other advantages for a diversified portfolio or retirement account withdrawal strategies.
Overall, SmartAsset said, high net capital gains can indicate robust markets and affluent populations in areas where realized gains may boost local economies through tax revenues and spending.
For the ranking, researchers used data from the IRS’s 2022 tax return release. The rankings include 3,022 counties, as well as a separate ranking for the 50 states and the District of Columbia, based on the average net capital gains reported for applicable returns.
They also reported line items for other investment gains, such as taxable interest, ordinary dividends and qualified dividends.
See the gallery for the 12 U.S. counties where Americans earn most from the investment, ranked by net capital gains.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.