Linked Questions

2 votes
1 answer
434 views

Can I really pay 0% tax on unlimited long term capital gains if I'm in the 12% federal income tax bracket? [duplicate]

I'm afraid I'm missing something because the 0% tax bracket for capital gains seems too good to be true. Everything I'm reading (e.g. "The zero percent tax rate on capital gains applies to people in ...
Jer's user avatar
  • 2,974
1 vote
0 answers
31 views

What assets/earnings are included as "income" when determining capital-gains tax rates? [duplicate]

According to Investopedia, people pay varying long-term capital gains tax based on an income-based rate schedule. It appears that a person with single tax-filing status who earns less than $39,375 (...
theforestecologist's user avatar
12 votes
3 answers
990 views

Can you step up your cost basis indefinitely via the 0% capital gains rate?

I had asked a previous question about moving money between mutual funds without taxation due to the 0% capital gains rate for those in low tax brackets. However, I realized that this 0% rate actually ...
BrenBarn's user avatar
  • 24k
1 vote
2 answers
5k views

How do taxes work when your only income is from capital gains?

Let's say I don't have ordinary income, so I'm at the 10% tax bracket. If all of my income is from capital gains, how much of it do I pay in taxes? My understanding is that if I'm in the 10% tax ...
user avatar
2 votes
3 answers
221 views

Tax implications of diversification

I have a question about diversifying some investments. For the purposes of my question you can assume that this is not retirement investing, and that I have a diversified retirement plan already in ...
user1118321's user avatar
2 votes
1 answer
692 views

Are long-term capital gains tax rates marginal or effective?

I've found many sites that list the current U.S. long-term capital gains (LTCG) tax rates for tax year 2021. But I can't find any explanation whether these tax rates are marginal or effective. For ...
tparker's user avatar
  • 899
1 vote
2 answers
162 views

Capital Gains Taxes for Mutual Funds and Tax Bracket Implications

Assume my taxable income is within the 25% bracket, and my mutual funds have capital gains that year. Additionally, my being in the 25% bracket occurs before the capital gains are accounted for. It ...
BaronFiner's user avatar
3 votes
2 answers
307 views

Capital gains are not taxed if total income is below $77,200. Does "total income" include capital gains, or not?

The tax rate for capital gains is 0% if your total taxable income is below $77,200 (if married filing jointly). But does "total taxable income" include capital gains, or not? For example, suppose my ...
mweiss's user avatar
  • 245
1 vote
1 answer
132 views

Calculate income for long term capital gains

How do you estimate your income for long term capital gains? Do short term capital gains count in this income for long term capital gains? Do short term capital losses reduce income for long term ...
Berry Blue's user avatar
2 votes
2 answers
387 views

Are non-qualified or qualified dividends taxed first?

This answer does not explicitly address the question of whether non-qualified or qualify dividends get taxed first, but am I correct that non-qualified dividends get taxed before qualified dividends ...
tparker's user avatar
  • 899