# US Capital Gains Tax MCP > The US Capital Gains Tax Calculator determines your tax liability after selling assets. It analyzes holding periods to classify gains as short-term or long-term, then calculates the precise tax owed using your annual income and filing status. ## Overview - **Category:** finance - **Price:** Free - **Tags:** tax, capital-gains, usa, finance, accounting ## Description When you sell an investment, figuring out what you actually owe can be complicated. This MCP handles the entire process: first, it tells you if your profit is considered a short-term or long-term gain based on how long you owned the asset. Next, it checks federal income brackets to give context for the actual tax rates that apply. Finally, with your annual taxable income and filing status provided, it runs the full calculation to tell you exactly how much money you need to set aside for taxes. Accessing this specialized financial modeling tool through Vinkius makes complex US tax analysis available directly within any MCP-compatible client. ## Tools ### calculate_gain_classification Determines if an asset transaction resulted in a short-term or long-term capital gain based on holding days. ### get_tax_bracket_context Provides the current income thresholds needed to calculate specific long-term tax rates for US citizens. ### estimate_tax_liability Calculates the final dollar amount of federal tax you owe on a realized gain using your annual taxable income and filing status. ## Prompt Examples **Prompt:** ``` I bought a stock for $1,000 and sold it for $2,500 after 400 days. What is my gain classification? ``` **Response:** ``` Your transaction resulted in a long-term capital gain of $1,500. ``` **Prompt:** ``` I have a $5,000 long-term gain and my annual taxable income is $40,000 with a Single filing status. How much tax do I owe on this gain? ``` **Response:** ``` The estimated tax due on your $5,000 gain is $0.00, as it falls within the 0% tax bracket for your income level. ``` **Prompt:** ``` What are the long-term capital gains thresholds for someone filing as Married Filing Jointly? ``` **Response:** ``` For Married Filing Jointly, the thresholds are: Up to $94,050 = 0%, Up to $583,750 = 15%, and above $583,750 = 20%. ``` ## Capabilities ### Determine Gain Classification It identifies if an asset sale qualifies as a short, long, or long-term capital gain based on the holding days. ### Check Tax Bracket Context It provides up-to-date income thresholds that define the tax rates for long-term gains (0%, 15%, 20%). ### Estimate Final Tax Liability It calculates the exact dollar amount of federal tax owed on a realized gain, factoring in your overall taxable income. ## Use Cases ### Modeling an Exit Strategy A portfolio manager wants to sell a large block of tech stock but needs to know if they can structure the sale to maximize long-term rates. They use calculate_gain_classification first, then get_tax_bracket_context to see where their income falls, and finally estimate_tax_liability to determine the minimum tax outlay. ### Post-Sale Tax Review An investor sells stocks for a significant profit. Instead of waiting days for an accountant, they ask their agent to run the gain classification tool using the sale date. They then feed that result and their annual income into estimate_tax_liability for an immediate tax answer. ### Tax Planning Check A client is considering a major investment that will generate taxable gains. The financial advisor uses get_tax_bracket_context to show the client how current income thresholds affect their potential tax rate, allowing them to plan for the next fiscal year. ## Benefits - Stop guessing your tax bill. By running the estimate_tax_liability tool, you get a precise dollar amount of tax owed, eliminating guesswork on major asset sales. - Instantly classify gains with calculate_gain_classification. You'll know immediately whether your profit counts as short-term or long-term based just on holding days. - Always know the rules. Use get_tax_bracket_context to see current income thresholds for long-term rates, ensuring you plan for potential tax changes. - Save hours of IRS table lookups. The combination of these tools lets your agent run a complete, multi-step financial analysis in seconds. - Accuracy matters when dealing with money. This MCP provides structured calculations that cover both the classification and the final liability estimate. ## How It Works The bottom line is, you get a clear, actionable estimate of your capital gains tax liability in one single workflow. 1. Input the asset sale details and holding period to determine if the profit is short-term or long-term. 2. Provide your annual taxable income and filing status so the MCP can check the relevant federal tax bracket thresholds. 3. Receive a precise calculation of the estimated dollar amount of tax you owe on that specific gain. ## Frequently Asked Questions **How does calculate_gain_classification work with my agent?** calculate_gain_classification determines if the profit is short-term or long-term based on the number of days you held the asset. It's the first step in determining your tax status. **Do I need to use get_tax_bracket_context before estimate_tax_liability?** While not strictly required, using get_tax_bracket_context helps confirm the rate structure. It provides transparency on the income thresholds that govern your final tax calculation. **Can I use US Capital Gains Tax Calculator for state taxes?** No. This MCP is built specifically to calculate federal US capital gains tax liability. For state-specific rules, you'll need a different tool or consultation. **What information does estimate_tax_liability require?** estimate_tax_liability requires three key inputs: the realized gain amount, your annual taxable income, and your specific filing status (e.g., Single, Jointly).