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The long term capital gains rate is 0% if your income is $0 to $39,375; so essentially your first $40k of capital gains is exempt if you have no income. For th
by dannyw 7y ago
The long term capital gains rate is 0% if your income is $0 to $39,375; so essentially your first $40k of capital gains is exempt if you have no income.
For the purposes of this calculation, your cap gain is added to your income to work out your bracket.
- anon73044 7y agoI would expect that 50% or more of hackernews readers make over $39,375
- abstractbarista 7y agoCertainly, but what OP actually meant is that capital gains from $0-$39375 is taxed at 0% (if you're a single filer). Then your next $395175 is taxed at 15%. Anything over that is taxed at 20%. It's similar to our tax brackets. Going to a higher bracket doesn't suddenly mean that all the money fitting in the prior bracket is taxed at that higher rate.