Brook2
Recycles dryer sheets
Normally I would say it makes sense to cash out the amount of capital gains under $44,000 to live off of for 0% federal taxes. But every year I get tripped up by three unexpected income streams with different tax rates that feel like elusive numbers: A) dribbles of royalty income by multiple sources that vary between $5,000-$10,000 (schedule C business income.) B) unexpected dividends c) Unexpected capital gains that are not automatically reinvested (I want to skim off the cash and not reinvest).
I’m a “back of the napkin” type of person who likes to have a general strategy without analyzing every number continually. It's the way I always ran a successful business. But planning for taxes is different and not always easy.
I’m trying to think of an overall simple strategy. Should I just see what ABC are in December and then only cash out capital gains for the remaining amount (to keep it under $44,000)? or just not obsess about any of this, since all of these are progressive taxes (correct) and if I go over it’s not a biggy?
I’m a “back of the napkin” type of person who likes to have a general strategy without analyzing every number continually. It's the way I always ran a successful business. But planning for taxes is different and not always easy.
I’m trying to think of an overall simple strategy. Should I just see what ABC are in December and then only cash out capital gains for the remaining amount (to keep it under $44,000)? or just not obsess about any of this, since all of these are progressive taxes (correct) and if I go over it’s not a biggy?
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