Paying NO taxes with capital gain income!
May 21, 2018
6 Comments
According to the IRS if you are in the 15% (or below) tax bracket, any long capital gain you get during the year is taxed at 0%
Let’s say the limit for filling as one single person is 40K to simply (is a bit less)
Questions:
- what is max amount of capital gain you can generate to pay no tax? Is it 40K?
- if you get 10K of income through a rental property, does this mean you can only sold 10K less of capital gain to still pay 0% tax on them?
- what happened if you generate 41K of income that year? Does all of your capital gain get tax or just the 1K above 40K?
comments
https://www.fool.com/taxes/2017/12/22/your-guide-to-capital-gains-taxes-in-2018.aspx
Follow up question, which is more a general tax question.
I generate 50K of income through a rental property that I can lower through let’s say 40K of deduction and then generate 30K of capital gain for a total taxable income of 50-40+30=40. Assuming 40K is the threshold to qualify to get 0% tax on capital gain (for sake of simplicity), will my capital gain still be tax at 0%? Or because I general 50K of income, will it be taxed higher?