@Pran wrote:
I see that (for 2021), if the gains are under $80800, then the tax rate is 0%. Can any one please confirm if that’s the case?
No, that is not the case. The tax rate on long-term capital gains is 0% if your total taxable income, including the long-term gain, is under $80,800. (The $80,800 figure is for 2021, for married filing jointly or qualifying widow(er).) Taxable income is basically Adjusted Gross Income (AGI) minus deductions. For 2021 taxable income is on Form 1040 line 15.
@Pran wrote:
Is this applicable even if earnings with my full time job wages are over 100K.?
Your income from your job affects the tax rate that applies to your long-term capital gain. The long-term capital gain is "stacked" on top of your taxable ordinary income when calculating the tax on the gain. As an example, let's say that you are married filing jointly, your total ordinary income is $110,000, and you use the standard deduction. If you are both under 65 and not blind your standard deduction for 2021 is $25,100. Your taxable income, without the long-term capital gain, is $84,900 ($110,000 - $25,100). So your ordinary income puts you over the $80,800 top of the 0% bracket. All of your long-term capital gain will be taxed at 15%. (If your taxable income, including the long-term capital gain, is over $501,600 some of the gain will be taxed at 20%.)
