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Old 11-11-2017, 09:41 AM
 
Location: Central Mexico and Central Florida
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LT Cap Gain tax rate is determined by your marginal tax rate. Does that mean your marginal tax rate if you didn't have a capital gain? Or the marginal tax rate WITH the capital gain added to your ordinary income?

Example

Married couple files joint, ordinary taxable income is 60K. Capital gain is 150K. What tax rate is the capital gain subject to? The marginal tax rate on 60K or the marginal tax rate on 210K?
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Old 11-11-2017, 10:01 AM
 
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15% on the 150k long term capital gains.
ordinary income rate on 60k
Total federal tax liability is around 30k
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Old 11-11-2017, 11:54 AM
 
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All earned income goes in the bucket first .then the capital gain goes in. Whatever qualifies within the 15% bracket is tax free. Anything over gets the marginal tste as high as 20% plus a 4% surcharge tax
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Old 11-11-2017, 12:46 PM
 
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All earned income goes in the bucket first .then the capital gain goes in. Whatever qualifies within the 15% bracket is tax free. Anything over gets the marginal tax rate as high as 20% plus a 4% surcharge tax
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Old 11-11-2017, 02:08 PM
 
Location: 5,400 feet
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You would compute your taxes using the qualified dividends and capital gains worksheet.
https://apps.irs.gov/app/vita/conten...heet_1040i.pdf
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Old 11-11-2017, 03:02 PM
 
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Be aware that the top rate of almost 24% on capital gains may not be the whole story . States do not recogmize special capital gain rates and a big capital gain can trigger the amt of it is still around .

If the gain is big enough the amt on all your other income can leave you worse off
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Old 11-12-2017, 05:32 AM
 
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Back in 2014 we sold some appreciating assets and really ended up shooting ourselves in the foot .

We delayed selling and when we finally did they raised the capital gain ratess from 15 to 20% .added the obama medicare aca surcharge of 4% and instead of paying 15% we were now at 24%.

We also had a 17k amt penalty on our our total tax bill because of the gain. But that was not the end of it .

The following year we got hit with the amt again because of all the state and local taxes we paid when we filed . The huge deduction tripped the amt again.

But that aint all folks .

We were two years from medicare . Well medicare goes back 2 years to set premiums .

Our medicare premiums jumped by an additional 600 a month for 2 people . That is an additional 600 ,not the total premium.

So much for just a 15% capital gain rate . Geesh.
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Old 11-12-2017, 07:33 AM
 
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I thought MathJak or someone mentioned a lower capital gains rate past age 65 for people who delayed SS.

I couldn't find this on a quick google search. Was I imagining this?
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Old 11-12-2017, 07:48 AM
 
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No ,dont get confused. Delaying ss out from any age just gives you more room in the 15% bracket for tax free capital gains that qualify. Other wise taxable ss goes in the bucket first and takes up space that could have been filled with qualified gains and taken tax free
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Old 11-12-2017, 09:43 AM
 
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You pay the long term capital gains tax rate based on the tax rate on other income. You have to be careful that short-term capital gains doesn't push you into a higher bracket and harvest losses and expenses to manage the tax rate. That's how Warren Buffet pays 0 percent. He pays himself just enough salary for a married couple to qualify in the 15 percent tax bracket.
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