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How do you get away with not paying any capital gains tax?

• refurb 5y ago
  "For example, in 2021, individual filers won’t pay any capital gains tax if their total taxable income is $40,400 or below." It's double for married filing a joint return. Then add on top the $24,000 deductible (and other possible credit/deductions). If you time your breaks from work correctly, you can claim almost $110,000 in long term capital gains and not pay a cent in tax.
  • tchock23 5y ago
    Americans earning less than $40,400 are generally unable to throw $2k into SPY, so while it’s a nice sentiment that it’s ‘fair’ because lower income people get breaks, it’s not quite the reality. https://outsider.com/news/many-americans-making-less-than-50k-say-their-savings-cant-cover-one-month-expenses-survey/ https://outsider.com/news/many-americans-making-less-than-50...
    • refurb 5y ago
      What do you mean "throw $2k in SPY"? Why not throw $200 per year ($18/month) for 10 years? My brother is single and has accumulated a significant nest egg and has never made more than $50,000 his entire life. And a married couple making $90,000 per year could invest $1,000 per year in SPY, then when the wife quits to stay home with the kids, the family could pull out $20-30k per year in long-term capital gains completely tax free.