Did anyone read this article by Kate Dore, CFP about 2024 Capital Gains?

[thepinkmonkey]

Hi everyone- I read this article with great interest: https://www.cnbc.com/2023/11/14/how-much-you-can-make-in-2024-and-still-pay-0percent-capital-gains-t...

I am confused. Does this mean that if my 2024 taxable income is less than $47,050 then I won't pay any LTCG's, regardless of the amount of the gains?

In my specific case for the 2024 taxable year I have Social Security and Pension minus the $16,150 Standard Deduction that will put me around $38,500. I won't take my RMD until 2025 so if this is true, it would be a one-time event in 2024. I do have a handful of stocks in a non-retirement account that I have held for years so the gains are significant (for me, maybe not for others).

As always, thanks in advance for any light you can shine on this subject.

TPM 

[Bsch4477]

Remember that your capital gains are included in your taxable income. You can use this calculator. 

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

[Opus 17]

No.  It works like this:

If your taxable income after the standard deduction is $38,000, then the first $9000 of long term capital gains is taxed at zero percent (bringing your income up to $47,000), but anything above that is taxed at 15%.  The applicable rate is determined by your total income including the gains.  If your total income goes over $518,000, then any additional gains are taxed at 20%.  So if you have really significant gains, you still may want to spread them out over time.

[thepinkmonkey]

Thanks to both of you.

I totally understand now.

I somehow knew it was too good to be true...