Question
Long Term Capital Gains
Hi folks,
Gaming out the 2021 tax year. Let me know what I'm doing wrong here -
- Married filing jointly
- AGI projected at around 25,000 (due to FEIE + rental loss)
- Assume standard deduction of 25100
- Assume no other deductions, so taxable income = 0
- So - I could technically sell stocks to the tune of 60,000 in long term capital gains, if I wanted, and that should result in no added tax liability because total taxable income would be under 80,800 and so long term capital gains tax is 0% for the entire amount.
Is this correct?
- If not --> why not?
- If yes --> then why, when I game it out on Turbotax 2022, federal tax due is 0 until I add the 60,000 in long term capital gains, and then it jumps to 4750
- Note: 1099-B for Turbotax 2022 is not ready so I've been adding it under capital gains in 1099-DIV.
