Question

Did anyone read this article by Kate Dore, CFP about 2024 Capital Gains?

Forum|Forum|2 years ago
December 6, 2023
2 replies
0 views

Hi everyone- I read this article with great interest: https://www.cnbc.com/2023/11/14/how-much-you-can-make-in-2024-and-still-pay-0percent-capital-gains-taxes.html

I am confused. Does this mean that if my 2024 taxable income is less than $47,050 then I won't pay any LTCG's, regardless of the amount of the gains?

In my specific case for the 2024 taxable year I have Social Security and Pension minus the $16,150 Standard Deduction that will put me around $38,500. I won't take my RMD until 2025 so if this is true, it would be a one-time event in 2024. I do have a handful of stocks in a non-retirement account that I have held for years so the gains are significant (for me, maybe not for others).

As always, thanks in advance for any light you can shine on this subject.

TPM

Not A Product Question

B

Bsch4477

Employee

Remember that your capital gains are included in your taxable income. You can use this calculator.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

O

Opus 17

Employee

No. It works like this:

If your taxable income after the standard deduction is $38,000, then the first $9000 of long term capital gains is taxed at zero percent (bringing your income up to $47,000), but anything above that is taxed at 15%. The applicable rate is determined by your total income including the gains. If your total income goes over $518,000, then any additional gains are taxed at 20%. So if you have really significant gains, you still may want to spread them out over time.