4 ms·
> 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 t
by FreakLegion 5y 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 5y agoAnd 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.