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[quote=Anonymous][quote=Anonymous]I don't know why everyone is making this so complicated.

Let's start with the important point that you will not be taxed on the account unless you generate taxable income in the account (dividends, realized gains, etc.) How much you will pay in tax is function of whether the taxable income is long term/qualified or short term/ordinary.

If you are in 24% bracket and MFJ then your income is between $172,751 to $329,850. That makes this easy. Your long term capital gains tax rate is 15%. Any tax on gains (or preferred dividends ) will be taxed at a rate of 15% on the income. Short term gains (positions held less than a year) and ordinary dividends will be taxed at your regular marginal income tax rate (24%).

Holler with additional questions. [/quote]

Thanks - you're good at explaining this!  I do have a follow up question: what determines whether your ETF provides long or short term gains?  Can you choose one that only offers long term gains?  [/quote]

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