Capital Gains Tax, any chance of going away ?

we can only hope

LTCG is already taxed at zero for taxpayers in 10 or 12% bracket plus standard deduction. That's nearly $130k MFJ before LTCG is charged. Seems fairly generous if you ask me. (It works out great for early retirees like myself)

If that doesnt apply to you, heirs get stepped up basis at death.

I get we want to encourage long term investment but it seems unfair to tax earned income at higher rate than passive investing income or even savings interest. Not to mention, I worked for the capital to invest and was already taxed once so why do I pay capital gains tax but my heirs that did nothing would get stepped up basis?

Going away so it will then be taxed as ordinary income? Why would you want that?

Just think: If there were no long term capital gains taxes, there would be no real need for an IRA or an HSA. People could use one pool of investments to finance their kids college, weddings, their own healthcare needs, and their retirement, and maybe, their own unemployment insurance. If the expenses for those things could be deducted from any capital gains taxes due, well, people just might start taking more responsibility for their own well being.....not really the kind of things the Government likes to encourage.

Was thinking about end of year moves and capital gains... do we think there will be any changes to the rates with Trump coming into office?

Not unless income tax goes away. And this is coming from someone who's capital gains are becoming equal to or more than my earned income. I don't think they should be progressive based on earned income either. All income should be taxed the same and much lower than current rates. No deductions and a tax increase on one is a tax increase on all.

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Capital Gains Tax

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disgusting

Do you get a rebate if your stock loses money?

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disgusting

Do you get a rebate if your stock loses money?

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I'm trying to figure out whether you're being sarcastic

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Just be happy it is not going on unrealized capital gains.

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That would take another Amendment as wealth growth is not considered income until it's realized. Also, there's no way Wall Street would donate to anyone voting for such an Amendment.

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NSOs would like to have a word with you…

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Agreed, but that is stock given as compensation and that difference apparently matters to the IRS. SCOTUS should have ruled more widely on Wisconsin Central Ltd (no idea if there are other SCOTUS cases which further underscore that difference or if that case and Chevron could be used to strike down that whole category).