Sunny
Recycles dryer sheets
- Joined
- Nov 7, 2013
- Messages
- 236
We are looking at about $45k in gains tax in 2014 unless we either A) cost that out over several years and hold positions we would rather sell now or B) rip the bandaid off and pony up and pay it to divest. In looking at a way to do B) without the $45K hit....
If in 2014 we contributed to a 457 to get $91,000 salary down to (barely) under the $72,500 couple 15% tax bracket (though that salary is one earner, one of us wouldn't earn anything in 2014 but we should I think still be able to file jointly), wouldn't that drastically reduce the $45K in gains tax? Or will selling off that much gains change the income level such that we bump up in tax rates anyway?
We don't want to let the tax tail wag the dog, but I also don't want one of us to work in 2014 and earn $40K just to turn around and pay $45K in gains tax if one of us could earn 0 and we can drastically reduce the $45K tax liability.
If in 2014 we contributed to a 457 to get $91,000 salary down to (barely) under the $72,500 couple 15% tax bracket (though that salary is one earner, one of us wouldn't earn anything in 2014 but we should I think still be able to file jointly), wouldn't that drastically reduce the $45K in gains tax? Or will selling off that much gains change the income level such that we bump up in tax rates anyway?
We don't want to let the tax tail wag the dog, but I also don't want one of us to work in 2014 and earn $40K just to turn around and pay $45K in gains tax if one of us could earn 0 and we can drastically reduce the $45K tax liability.