November 17, 2014

What is the long term capital gains rate for people in the 10 and 15% tax brackets? Why should you care?

3 thoughts on “November 17, 2014”

  1. Garrett Haag says:

    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.

  2. Garrett Haag says:

    That is federally, states have their own tax rates for capital gains, while Iowa does not break down long term and short term gains.

  3. Mike Finley says:

    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!

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