0% Long Term Capital Gains Tax--Is it Legit?

0% Long Term Capital Gains Tax--Is it Legit?

How long term capital gains are taxed is a source of confusion for many. Some of the questions I've heard--

Can long-term capital gains put me in a higher tax bracket for ordinary income?
Does my ordinary income affect my capital gains tax?
Is there really a 0% tax bracket for long term capital gains and how does it work.

To be clear, I am not a tax professional. I have spent a lot of time study this issue, particularly as I enter retirement with much lower ordinary income.

In this video we'll look at the mechanics of long term capital gains tax, including how to works with ordinary income and deductions. We'll also cover something called the bump zones, where ordinary income can push us into higher long term capital gains tax rates.

We'll cover three tax planning strategies in retirement and how long term capital gains tax can help us pay less in taxes.

Resources mentioned in this video:

Long Term Capital Gains Tax Rates: https://www.nerdwallet.com/article/ta...
Bump Zones: https://www.kitces.com/blog/long-term...
Tax Gain Harvesting (Kitces): https://www.kitces.com/blog/understan...
Tax Gain Harvesting vs Roth Conversions (Kitces): https://www.kitces.com/blog/understan...
Tax Gain Harvesting (Schwab): https://www.schwab.com/resource-cente...
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ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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