Quote from: lightfoot on Today at 03:31:44 AM

Quote from: Biodom on Today at 03:17:12 AM

Example: You are married, have 200K income and 200K long term cap gains.
Your "regular" combined income is taxed at 32%, but your longterm cap gains are taxed at 15%.
See the table in here:
https://erwealth.com/podcastblog/will-capital-gains-push-me-into-a-higher-tax-bracket

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Capital gains will not cause your ordinary income to be taxed at a higher rate..
So, again, long-term capital gains are taxed at different rates and separately from your ordinary income.

Unless i completely misunderstand their "slang" it appears that you could be taxed differently for reg income and for cap gains.

...So the best option is to be a complete louse, live off your LTCG and pay zero taxes on the first 80k. Which by the way is equal to a 100k "salary" because of all the taxes that cum out.

a well fed 'louse'..i get it

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Quote from: lightfoot on Today at 03:31:44 AM

Which leads to my real fun question:

If on Jan 1 you redirect 100% of your salary to a 401k, then quit once you hit $19500 (the 401k limits), do you still get the whole 80k CG at 0% rate because the 401k was a "top line" (before AGI) deduction or is it based on total income?

Is health insurance paid for by CG profits deductible? Since Health insurance is another top line deduction can you work an extra few weeks for that money and still get the 80k 0% CG tax rate?

Inquiring minds want to know. :-)

Great questions..i don't know and in my org they like you to quit (retire) either in January or September (for some strange reason).
That trick with 401K is definitely something to consider or at least run by the CPA. Thanks!

Now, that our cap gains are currently melting..maybe I would still consider working for a couple of more halvings.