Long term capital gains (from the sale of investments held more than one year) are taxed at a maximum of 20%
Short term capital gains (from the sale of investments held for one year or less) are taxed at the same rate as ordinary income.
Qualified dividends are subject to either 0%, 15% or 20% maximum tax rates. Dependent on filing status and taxable income.
If capital loss is more than capital gains, a taxpayer can claim a capital loss deduction upto $3000.00 in the current tax year and carryover any remaining losses to future years.
Passive activity capital gains and losses occur when there is no material participation in the business activity. Passive activity loss is no deductible on an individual income tax however, the loss can offset passive activity gains.