My wife & I file joint return. we earn $45K per year. If we sell $100K mutual funds that we purchase 5 years ago for $50K will our long term capital gain be 0% or 15%?

ken31 · ‎June 3, 2019

The reason I ask is because my broker said that if the long term capital gains( $50K) on the sale along with our $45K salary took us above $75,900 that our capital gains would go from 0% to 15%. I have never seen this mentioned before in the discussion of capital gains.

TaxGuyBill · ‎June 3, 2019

It would be taxed at 0%

Your total income would be $95,000. After the Standard Deduction and your personal exemptions, your "taxable income" would be less than $75,000. That would put all of the gain in the 0% capital gain bracket (the 'regular' tax bracket of 15%).

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SweetieJean · ‎June 3, 2019

Assuming no 2017 tax law changes.

fanfare · ‎June 3, 2019

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fanfare · ‎June 3, 2019

OK please ignore my post. I misread the total wages involved. Sorry.

TomD8 · ‎June 3, 2019

Your broker is correct. The maximum taxable income on a joint return for the 0% capital gains rate is $75,300. (2016)

This web reference might help explain: http://www.bankrate.com/finance/taxes/capital-gains-tax-rates-1.aspx

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

SweetieJean · ‎June 3, 2019

State taxes may be different.

My wife & I file joint return. we earn $45K per year. If we sell $100K mutual funds that we purchase 5 years ago for $50K will our long term capital gain be 0% or 15%?

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My wife &amp; I file joint return. we earn $45K per year. If we sell $100K mutual funds that we purchase 5 years ago for $50K will our long term capital gain be 0% or 15%?

Get your taxes done using TurboTax

Get your taxes done using TurboTax

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My wife & I file joint return. we earn $45K per year. If we sell $100K mutual funds that we purchase 5 years ago for $50K will our long term capital gain be 0% or 15%?