Quote from: yoyoceramic on June 06, 2011, 11:33:40 PM

Quote from: creighto on June 06, 2011, 11:32:15 PM

Quote from: yoyoceramic on June 06, 2011, 11:31:16 PM

Quote from: enmaku on June 06, 2011, 11:28:40 PM

Quote from: SgtSpike on June 06, 2011, 11:26:35 PM

Quote from: enmaku on June 06, 2011, 11:23:44 PM

Do "capital gains" add to your total income for the purpose of determining your tax bracket or are they taxed at the rate of your income-only tax bracket?

I do not believe capital gains adds to your total income for determining your tax rate.

So what about students and the like, who perhaps have no income or have income so low as to qualify as exempt? I would assume they'd pay at the lowest bracket, right?

This is correct. In 2011 for a non-married individual, if you make less than $34,500 you would pay 0% capital gains taxes. So, before you sell your bitcoin, ask for a reduction in your salary, then wait a year Wink

Or just retire, then wait a year.

If retiring = zero income, then yes. But any distributions from qualified plans, deferred comp, stock options, rental income, 85% of social security etc.. all count towards ordinary income.

Social Security payments don't, and the sad fact is that most Americans over 55 are counting on SS as a major component of their retirement funding, because they didn't bother to save anything.