walkinwood
Thinks s/he gets paid by the post
I want to verify that I've understood this correctly.
Our ordinary income is less than our deductions, HSA contribution & personal exemptions.
If our taxable income goes over the 15% bracket (ie. greater than $75,300) because we have realized capital gains by selling shares, then the marginal tax on those gains is 15%.
That is, the marginal rate will not be 30% (or 25%) because our ordinary income from non-qualified dividends, ST cap gains and interest is low - less than our deductions, HSA contribution & personal exemptions. We are ER'd so no earned income.
This is the best explanation of the tax implications of harvesting cap gains that I've seen, but he does not address our particular situation:
https://www.kitces.com/blog/underst...st-capital-gains-for-a-free-step-up-in-basis/
Our ordinary income is less than our deductions, HSA contribution & personal exemptions.
If our taxable income goes over the 15% bracket (ie. greater than $75,300) because we have realized capital gains by selling shares, then the marginal tax on those gains is 15%.
That is, the marginal rate will not be 30% (or 25%) because our ordinary income from non-qualified dividends, ST cap gains and interest is low - less than our deductions, HSA contribution & personal exemptions. We are ER'd so no earned income.
This is the best explanation of the tax implications of harvesting cap gains that I've seen, but he does not address our particular situation:
https://www.kitces.com/blog/underst...st-capital-gains-for-a-free-step-up-in-basis/
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