Long Term Capital Gains Rate

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investingforbank
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Joined: Tue Jan 12, 2021 8:28 pm

Long Term Capital Gains Rate

Post by investingforbank »

If I make less than $40,000/yr (0% Federal Long Term Capital Gains Rate) and live in Florida (no long term capital gains tax), will selling an appreciated mutual fund (in taxable) that I have held for 1 year or more result in no taxes? Thanks.
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AndrewXnn
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Re: Long Term Capital Gains Rate

Post by AndrewXnn »

It depends on the amount of long term capital gains being realized.

The amount of gains plus income would have to be <$40K after deductions for a single taxpayer.
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Topic Author
investingforbank
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Joined: Tue Jan 12, 2021 8:28 pm

Re: Long Term Capital Gains Rate

Post by investingforbank »

AndrewXnn wrote: Wed Jul 21, 2021 5:16 pm It depends on the amount of long term capital gains being realized.

The amount of gains plus income would have to be <$40K after deductions for a single taxpayer.
The income plus gains will be <$40k
exodusNH
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Re: Long Term Capital Gains Rate

Post by exodusNH »

investingforbank wrote: Wed Jul 21, 2021 5:08 pm If I make less than $40,000/yr (0% Federal Long Term Capital Gains Rate) and live in Florida (no long term capital gains tax), will selling an appreciated mutual fund (in taxable) that I have held for 1 year or more result in no taxes? Thanks.
This explains the interplay:

https://www.kitces.com/blog/long-term-c ... in-0-rate/
sycamore
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Re: Long Term Capital Gains Rate

Post by sycamore »

exodusNH wrote: Wed Jul 21, 2021 5:50 pm
investingforbank wrote: Wed Jul 21, 2021 5:08 pm If I make less than $40,000/yr (0% Federal Long Term Capital Gains Rate) and live in Florida (no long term capital gains tax), will selling an appreciated mutual fund (in taxable) that I have held for 1 year or more result in no taxes? Thanks.
This explains the interplay:

https://www.kitces.com/blog/long-term-c ... in-0-rate/
+1

And here's one way to visualize the interplay:
$10k income and $30k cap gains => no taxes. https://engaging-data.com/tax-brackets/ ... 0&cg=30000
$15k income and $25k cap gains => $250 in taxes. https://engaging-data.com/tax-brackets/ ... 0&cg=25000

Also, here's a good/free tax estimator that can take many things into account: https://www.mortgagecalculator.org/calc ... ulator.php
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grabiner
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Re: Long Term Capital Gains Rate

Post by grabiner »

There are also other parts of the tax code which depend on adjusted gross income. For example, the capital gain might take you over the limit for the Saver's Credit, or cause you to have too much investment income to get the Earned Income Credit.
Wiki David Grabiner
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