Join Early Retirement Today
Closed Thread
 
Thread Tools Search this Thread Display Modes
Will 0% cap. g. in the two lowest tax brackets be going away under the new tax plan?
Old 11-05-2017, 05:11 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Jul 2007
Location: St. Louis
Posts: 1,421
Will 0% cap. g. in the two lowest tax brackets be going away under the new tax plan?

Will 0% capital gains in the two lowest tax brackets be going away under the new tax plan?
FANOFJESUS is offline  
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-05-2017, 05:24 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 17,170
Nothing has been passed yet so there are several proposals that may/not come to pass. I’d wait and see but here’s a recent version from one source:
Quote:
Tax rates on long-term capital gains and dividends
For 2018 and beyond, the GOP bill would retain the existing three tax rates on long-term capital gains and qualified dividends: 0%, 15% and 20%. The rate brackets for 2018 would be as follows, based on taxable income (gross income, including capital gains and dividends, minus allowable write-offs).

Married joint-filers

• $0 to $77,199: 0% bracket (almost identical to bracket scheduled for 2018 under current rules).

• $77,200 to $478,999: 15% bracket (ditto)

• $479,000 and higher: 20% bracket (ditto)

Heads of households

• $0 to $51,699: 0% bracket (almost identical to bracket scheduled for 2018 under current rules).

• $51,700 to $452,399: 15% bracket (ditto).

• $452,400 and higher: 20% bracket (ditto).
https://www.marketwatch.com/story/ho...ers-2017-11-03
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 30% bond funds / 20% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline  
Old 11-05-2017, 06:15 PM   #3
Recycles dryer sheets
 
Join Date: Aug 2013
Location: New Jersey
Posts: 363
According to this article there is no change in the capital gains rates https://www.kitces.com/blog/tax-cuts-and-jobs-act-2018-house-gop-tax-reform-proposal/
Al18 is offline  
Old 11-05-2017, 06:53 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 30,587
The cap gains tax brackets posted above are correct, however for incomes above $250,000 for MFJ, you have an addition 3.8% Net Investment Income tax on long-term capital gains which means effectively there are 4 brackets, with 18.8% tax above $250K and 23.8% above $479K.

The Net Investment Income Tax is still there in the proposal according to the Kitces write-up.
__________________
Retired since summer 1999.
audreyh1 is offline  
Old 11-07-2017, 08:17 AM   #5
Recycles dryer sheets
 
Join Date: Jan 2012
Posts: 259
Let's say I'm MFJ at an income between $77,200 and $89,999.

My marginal regular income tax rate of 12% is less than my marginal capital gains rate of 15%.

Is this correct? Am I missing something here? Seems like the intention has always been to have income taxed at a higher rate than capital gains.
oldphd is offline  
Old 11-07-2017, 08:19 AM   #6
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland again!
Posts: 35,381
There's a thread on the tax plan with lots of information. To avoid confusion, lets keep the discussion going in just one place, there. http://www.early-retirement.org/foru...ml#post1961133
MichaelB is online now  
Closed Thread


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Future of cap on OOP under Obamacare kmt1972 Health and Early Retirement 15 05-14-2014 06:39 AM
How Cap Gains/Carryover Losses impact MAGI under ACA NoMoreJob FIRE and Money 4 10-17-2013 11:59 AM
Cap Gain Impact on MAGI under ACA? NoMoreJob Health and Early Retirement 3 10-04-2013 11:41 AM
U.S. Economy: Home Sales Drop to Lowest in More Than Two Years Sam FIRE and Money 65 08-25-2006 07:37 PM
2008 cap gains taxes: zero in 10% & 15% income-tax brackets Nords FIRE and Money 37 08-02-2006 04:41 PM

» Quick Links

 
All times are GMT -6. The time now is 01:35 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.