F4mandolin
Full time employment: Posting here.
Just noticed that I don't have to pay cap. gains....as long as I stay in the 15% tax bracket.
ok........final exam question. assume you are filing Married Filing Jointly where the top of the 15% bracket is 72500 taxable income. Your taxable income is now 72499. You want to sell some stock with a LTCG of 10000
or 100000. Do you pay capital gains tax?
Just noticed that I don't have to pay cap. gains....as long as I stay in the 15% tax bracket.
ok........final exam question. assume you are filing Married Filing Jointly where the top of the 15% bracket is 72500 taxable income. Your taxable income is now 72499. You want to sell some stock with a LTCG of 10000
or 100000. Do you pay capital gains tax?
F4, I had this same epiphany last december while playing around with TurboTax. This is a very important fact that we should all be very aware of. In my real life, I have shared this with a few people and their interest level is underwhelming. For a few hours planning and implementing per year I figure to save a few thousand per year, a very nice payback.
Also don't forget that return of capital is tax-free.
So if you sell $100,000 of shares that you paid $50,000 for back in 2009, you will have $100,000 to spend because you won't pay any taxes on it. Wow! That could be $100,000 a year for life all tax free!
^ You use Retirement Calculator - Parameter Form and TurboTax to plan your withdrawals and Roth conversions so that you don't have to ever pay Federal income tax again. Or you don't plan and pay lots of income tax for no good reason.