Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@RonaldRyan9 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. 'Bridget Mary Turow", a licensed fiduciary who has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
Please continuing making these videos, they are so useful. There are information here that I don't hear from others, i.e. splitting up LT gain and LT gain goes on top of earned income. Thank you!
Please help clarify what you are presenting. You’ve mentioned taxable income and AGI when talking about the long term capital gains tax rates. I realize taxable income and AGI are not the same thing. What are the figure ranges shown in the tax rate chart representing? Is it the taxable income that’s left after the standard deduction is subtracted?
How would converting traditional IRA's to ROTH IRA's affect the long term capital gains rate on an investment property that we plan to sell. Will the conversion affect our AGI?
I have a quick question: I am Single, in the 24% tax bracket due to my full-time job making $130K. I sold TSLA stock Ive held for almost 2 years with capital gains of $20K. Would I pay tax on the TSLA stocks at 0% or 15% rate?
Since your income is $130K, you would most likely pay Long Term Gain tax of 15% Federal tax on the full gain and potentially state tax depending on the state that you live in. (Comment is for education. Not advice)
Great video! Details on the long term CAP gains tax brackets info was surprisingly difficult to find and you even went into details about tax sheltering strategies! Thanks so much.
Hi..., I am in Pheonix, AZ. Do capital gain tax apply to mobile homes...? I bought the MH 4yrs ago and have been paying the taxes on it, the thing is... That I had a problem getting the title transferred to me for the longest time. I FINALLY got the title transferred 6 months ago and now I'm selling the MH at a nice profit. The land is leased at $600, and I was a private buyer that bought from a private seller... I already bought another home in FL. 4 months ago and plan on moving there when this is sold... Can the Capital G tax (if any) be deferred to the new home...??? I am unemployed. 56yrs old. And these are primary residents for me... It does show on the community lease that I have been here since 2017, but the tax office has the previous owner on their records paying the taxes up until 2021... Am I screwed...😣 WORRIED...😓
The amount subject to 0% is based on your taxable income not your AGI. Do the exercise on the Qualified Dividends and Capital Gains Worksheet and you will see what I mean. Line 9 on that worksheet tells you how to get the amount subject to 0% tax rate for Long Term Cap Gains.
No. If married filling jointly...$83,350 - $35,000=$48,350 of capital gains you can add to your 'income', tax free! Try to make that $35,000 "disappear", into 401k/HSA/ROTH IRA Reduce that income earned as a salary by maxing out salary
@@jdmcc , if I don't have to pay taxes on the capital gains then why should I do anything else with my income. I will have a 500,000 capital gain from a one time stock sale with a zero income year and you say I won't have to pay a penny in tax.
@@kenreding wrong. Since you wont have a w-2 or take from you 401k this year.... You will pay zero dollars in tax for the first $83,350 worth of that stock you sell.(only.....$41,675 if filing single) If you sell $1 more, 15c(15%) will be taxed!
Tell me if I am wrong (I usually am) :-) From what I gathered from your video. My mother-in-law's situation: Primary residence Purchased in 1983 for about $400k (and lived in since) No more mortgage (paid off) Value now: 1.75m (let's say we sell at that) Improvements = Maybe around $50k So delta = 1.3m from purchase and sale of house. Minus the 250K allowance (she's single) = 1.05m so that is the profit she walks away with. Current income level: She only gets a very small SS check each month. So her effective tax rate when I file is 0% Basically she makes around $15k per year. So does that mean since this is a long term situation (she's owned the house and lived in since 1983) and because her tax rate when she files is 0%, that the gains she's made on the house won't get taxed? Because her effect tax rate is 0%? This is where I am sure I am misunderstanding things.
Please consult an accountant for the actual numbers for your situation. If her taxable income (line 15 of f1040) is ZERO and she is married filing jointly, then in 2022 the first $83,350 of the real estate long term gains will be taxed at 0%. Then the next $83,350 to $517,200 will be taxed at 15%. The final $517,200 and above will be taxed at 20%. But wait there is more! You must also pay an additional 3.8% on your MAGI over $250K. At 15% you pay $65,078 At 20% you pay $106,560 with an additional 3.8% on ($1.05M - $250K) = $30,400 If her MAGI is $0, then her total tax liability for the sale in 2022 is $202,038.
I'm now retired but do some day trading for extra income. How about a video as to whether or not to set up an "S" or "C" Corp for day traders? Deductions for: health insurance, long term care (LTC) premiums, setting up a SEP or 401k etc. Great VIDS!
Great video, I consider myself very knowledgeable on long term capital gains taxes, but I never even considered maxing out taxable 401K and IRA contributions in order to reduce income to get more gains into the 0% bucket.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@RonaldRyan9 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. 'Bridget Mary Turow", a licensed fiduciary who has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@RonaldRyan9 'Bridget Mary Turow".
Lookup with her name on the webpage
You never really pay 20% because in that bracket you would have to pay the additional 3.8% tax so it’s 23.8%.
Please continuing making these videos, they are so useful. There are information here that I don't hear from others, i.e. splitting up LT gain and LT gain goes on top of earned income. Thank you!
Very informative video and thank you for the income stacking clarification. Well done …Ted
Is this gross or net income?
Please help clarify what you are presenting. You’ve mentioned taxable income and AGI when talking about the long term capital gains tax rates. I realize taxable income and AGI are not the same thing. What are the figure ranges shown in the tax rate chart representing? Is it the taxable income that’s left after the standard deduction is subtracted?
It's based on "taxable income" which is your AGI minus either the standard deduction or itemized deduction. (Comment is for education. Not advice)
Thank you for your reply
How would converting traditional IRA's to ROTH IRA's affect the long term capital gains rate on an investment property that we plan to sell. Will the conversion affect our AGI?
Can you offset long term capital gains on stocks, with depreciation from an investment property?
What about IRMAA? Will long term capital gains trigger IRMAA penalties?
Yes, long term capital gains income counts toward the Medicare IRMAA (Education. Not Advice)
I have a quick question: I am Single, in the 24% tax bracket due to my full-time job making $130K. I sold TSLA stock Ive held for almost 2 years with capital gains of $20K. Would I pay tax on the TSLA stocks at 0% or 15% rate?
Since your income is $130K, you would most likely pay Long Term Gain tax of 15% Federal tax on the full gain and potentially state tax depending on the state that you live in. (Comment is for education. Not advice)
Great video! Details on the long term CAP gains tax brackets info was surprisingly difficult to find and you even went into details about tax sheltering strategies! Thanks so much.
Hi..., I am in Pheonix, AZ. Do capital gain tax apply to mobile homes...? I bought the MH 4yrs ago and have been paying the taxes on it, the thing is... That I had a problem getting the title transferred to me for the longest time. I FINALLY got the title transferred 6 months ago and now I'm selling the MH at a nice profit. The land is leased at $600, and I was a private buyer that bought from a private seller... I already bought another home in FL. 4 months ago and plan on moving there when this is sold... Can the Capital G tax (if any) be deferred to the new home...??? I am unemployed. 56yrs old. And these are primary residents for me... It does show on the community lease that I have been here since 2017, but the tax office has the previous owner on their records paying the taxes up until 2021... Am I screwed...😣
WORRIED...😓
The amount subject to 0% is based on your taxable income not your AGI. Do the exercise on the Qualified Dividends and Capital Gains Worksheet and you will see what I mean. Line 9 on that worksheet tells you how to get the amount subject to 0% tax rate for Long Term Cap Gains.
So if I only make 35,000 a year at my full time job I will never have to pay any capital gains tax?
No. If married filling jointly...$83,350 - $35,000=$48,350 of capital gains you can add to your 'income', tax free! Try to make that $35,000 "disappear", into 401k/HSA/ROTH IRA
Reduce that income earned as a salary by maxing out salary
@@jdmcc , if I don't have to pay taxes on the capital gains then why should I do anything else with my income. I will have a 500,000 capital gain from a one time stock sale with a zero income year and you say I won't have to pay a penny in tax.
@@kenreding wrong. Since you wont have a w-2 or take from you 401k this year.... You will pay zero dollars in tax for the first $83,350 worth of that stock you sell.(only.....$41,675 if filing single) If you sell $1 more, 15c(15%) will be taxed!
Tell me if I am wrong (I usually am) :-) From what I gathered from your video.
My mother-in-law's situation:
Primary residence
Purchased in 1983 for about $400k (and lived in since)
No more mortgage (paid off)
Value now: 1.75m (let's say we sell at that)
Improvements = Maybe around $50k
So delta = 1.3m from purchase and sale of house.
Minus the 250K allowance (she's single) = 1.05m so that is the profit she walks away with.
Current income level: She only gets a very small SS check each month. So her effective tax rate when I file is 0% Basically she makes around $15k per year.
So does that mean since this is a long term situation (she's owned the house and lived in since 1983) and because her tax rate when she files is 0%, that the gains she's made on the house won't get taxed? Because her effect tax rate is 0%?
This is where I am sure I am misunderstanding things.
Please consult an accountant for the actual numbers for your situation.
If her taxable income (line 15 of f1040) is ZERO and she is married filing jointly, then in 2022 the first $83,350 of the real estate long term gains will be taxed at 0%. Then the next $83,350 to $517,200 will be taxed at 15%. The final $517,200 and above will be taxed at 20%. But wait there is more! You must also pay an additional 3.8% on your MAGI over $250K.
At 15% you pay $65,078
At 20% you pay $106,560
with an additional 3.8% on ($1.05M - $250K) = $30,400
If her MAGI is $0, then her total tax liability for the sale in 2022 is $202,038.
I'm now retired but do some day trading for extra income. How about a video as to whether or not to set up an "S" or "C" Corp for day traders? Deductions for: health insurance, long term care (LTC) premiums, setting up a SEP or 401k etc. Great VIDS!
Great video, I consider myself very knowledgeable on long term capital gains taxes, but I never even considered maxing out taxable 401K and IRA contributions in order to reduce income to get more gains into the 0% bucket.