Unearned income as sole income - tax rate?

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Q. Unearned income as sole income - tax rate? I am planning to quit my present job when I am forty (I am thirty-five now) to take up writing full-time. I will be living in my (paid-off) house and will only have the income from an index fund investment until the writing brings some money in (which it might never do.) I estimate that I will be getting about seven thousand dollars a year in income from the investments. Possibly a little less, not likely for it to be much more. My question is this... how will the investment income be taxed? At what rate? Will owning the house affect my situation? Will it make any difference that I am self-employed (as a writer) rather than unemployed? Will the investment income being my sole source of income make any difference in how it's taxed?

A. - Capital gains rate on the investment held over 12 months, ordinary rate on the investments held less than 12 months. - Not on the tax rate for Income Tax or capital gains tax. You will have to complete Schedule C for the business income and

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