@wufibugs
While you are not able to have zero capital gains tax rate, I'm fairly certain that you would be in the 15% tax rate; income doesn't exceed $492,300.
The law is designed to benefit those with very low income and when someone has a gain that is substantial, they no longer have low income. Plus you have the cash to pay the tax.
So if you have a gain of $100,000, you will pay $15,000 netting $85,000. That's a pretty good deal and I would take that all day long.
Your actual tax may even be lower depending on the facts. This is due to the way the tax calculation works:
- Your tax on all taxable income is the smaller of:
- The tax on all your taxable income including the capital gain, or
- The tax on your regular income (without capital gains) plus the tax on your capital gains using the capital gains tax rate.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
