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Level 1
Oct 25, 2023 6:40 PM UTC
Question

Long term capital gains

Hello, I have a question about Fed LT capital gains. My income this year will be low due to a longer period of unemployment. I am considering realizing some LT capital gains since my understanding is that if my taxable income is below $44,625 I would not owe any Fed LT capital gains, is that correct? 

 

In a simple example would the calculation go something like if my W2 income + other income (unemployment) + LT capital gains - standard deduction < $44,625, then I would not owe any Fed LT capital gains tax? 

 

Thank you!

1 reply

Level 15
Oct 25, 2023 6:46 PM UTC

You are correct for federal tax. State tax May well be calculated differently.