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Thank you for response, I really appreciate it. I’ll take a look at that form and get it filed out, I have no intention of hiding anything, I just didn’t know a

Thank you for response, I really appreciate it. I’ll take a look at that form and get it filed out, I have no intention of hiding anything, I just didn’t know any better back in 2014. As of now I’ve made zero trades but I want to pull out the max you can for long term capital gains without getting taxed by that ($40K) and I figured it’d probably spread out the cash-outs to even out the risk. I asked the person that manages my retirement fund about help with Crypto taxes and got the equivalent of a blank stare so I’ll probably need to look online for someone to hire since I don’t know how many people around me specialize in something like that. Thank you again for your feedback. EDIT: As shown in the replies below I misunderstood how long term capital gains were taxed. I though the brackets were based on how much you made off the trade, not based on your income. The $40K number I mention above doesn't have any significance for me in reality. If you make between $40K-$500K you pay 15% on long-term gains.

tldrthelaw 6y ago
Happy to help. Best of luck, you’ve got the right approach.
FreakLegion 6y ago
> I want to pull out the max you can for long term capital gains without getting taxed by that ($40K) Will this be your only income? If not, you'll still owe taxes. Capital gains aren't separate from the rest of your income; they're just taxed at different rates. If this will be your only income, don't forget about the standard deduction. That gives you another $12.4K toward the 0% long-term capital gains rate, so $52.4K total.
- joshstrange 6y ago
  And this is why I need to just pay someone else to handle this for me. I've read a bunch on this but I was under the (mistaken) assumption that the brackets for capital gains taxes were based on how much you made in gains (ie. up to $40K in /gains/ is taxed at 0%). Ok, well that sucks a little bit but really what that means is I'm going to get taxed at 15%, I knew 0% was too good to be true, even for long term capital gains. EDIT: Thank you for calling that out, it will have saved me from an unpleasant surprise next April.

tldrthelaw 6y ago

Happy to help. Best of luck, you’ve got the right approach.

FreakLegion 6y ago

> I want to pull out the max you can for long term capital gains without getting taxed by that ($40K) Will this be your only income? If not, you'll still owe taxes. Capital gains aren't separate from the rest of your income; they're just taxed at different rates. If this will be your only income, don't forget about the standard deduction. That gives you another $12.4K toward the 0% long-term capital gains rate, so $52.4K total.

joshstrange 6y ago
And this is why I need to just pay someone else to handle this for me. I've read a bunch on this but I was under the (mistaken) assumption that the brackets for capital gains taxes were based on how much you made in gains (ie. up to $40K in /gains/ is taxed at 0%). Ok, well that sucks a little bit but really what that means is I'm going to get taxed at 15%, I knew 0% was too good to be true, even for long term capital gains. EDIT: Thank you for calling that out, it will have saved me from an unpleasant surprise next April.