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Capital Gains Tax Free

Posted on 12/24/13 at 9:41 am
Posted by NBR_Exile
Houston via Baton Rouge
Member since Jul 2012
1008 posts
Posted on 12/24/13 at 9:41 am
I recently discovered that capital gains for 2013 can be tax free. If your adjusted taxable income is in the 15% tax bracket, you will pay no tax on gains up to the 15% percent limit of 72,500.

I know this may not mean much to the baller's in here, but it is a big deal for my wife and I this year. I have a modest income over this threshold, but combined with our deductions we are under the 72.5k threshold. My wife, a lawyer that took some time off, normally brings in enough income that we would not be able to take advantage of this. But for 2013, I have sold some appreciated stock to fill the 15% bracket tax free!

Your thoughts?
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89765 posts
Posted on 12/24/13 at 10:21 am to
quote:

Your thoughts?


It can be used strategically - I would take those gains - being careful not to knock yourself out of the bracket, but take as much gains as you can, then immediately reinvest into Roth (up to the max) and that yields double non-taxed benefits. Consult your tax professional, but I believe my idea will work.
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