November 17, 2014
What is the long term capital gains rate for people in the 10 and 15% tax brackets? Why should you care?
What is the long term capital gains rate for people in the 10 and 15% tax brackets? Why should you care?
Its 0% in 2014, you should care because if you fall in that range you need to know what you will pay for taxes, you may want to move some money from a traditional ira to a roth if you have some room left over that would be tax free. You dont pay capital gains on anything below 75k for a couple.
That is federally, states have their own tax rates for capital gains, while Iowa does not break down long term and short term gains.
Well said, gentlemen. Let’s review.
If you are in the 10% or 15% tax brackets, your long term capital gain rate is 0%! This means you should focus on accumulating as many long term capital gains (securities held longer than 1 year before selling at a profit) as you can.
This can be done by owning tax efficient no-load index funds like the Total Stock Market Index Fund or the Total International Stock Index Fund. Buy them and hold them for long periods of time. YOU will benefit!