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April 10, 2025
Question

Tax on Long Term Capital Gains

  • April 10, 2025
  • 1 reply
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I know that there is 0% tax rate on Long term capital gains if your taxable income is at or below a certain rate. I have two questions that I cannot find answers for anywhere.

First, What is considered your "taxable income" in this case? There are three values for this on form 1040SR  (Line 6b - Taxable Income, Line 11 - Adusted Gross Income, and Line 15 - Taxable Income, I.e. after all deductions)? 

Second, is there a limit on how much long term capital gains you can get tax free if you qualify via income? For example, can you go as high as no taxes on over $100,000 in long term capital gains?

Thanks 

    1 reply

    Employee
    April 10, 2025

    Your taxable income is line 15. Note that line 15 includes capital gains. So if you had $100,000 in gains your taxable income would be greater than the 0% category.