Say I have some money in stocks, should I be selling them 1 year + day every year to limit future tax burden if I'm making $0 in income?
Someone posted $49,450 is the long term capital gains you get taxed 0% on (+ standard dividend?).
So, I should obviously sell my stocks up to that profit limit every year, right? And just do this every single year forever, right?
Going $0 income with long term capital gains, should I always be selling and rebuying stocks up to the taxable limit every year to be taxed 0%?
byu/Suitable-Economy-346 intax
Posted by Suitable-Economy-346
3 Comments
Yeah you want to raise that cot basis as much as possible
Why not? Any year you have potential tax but aren’t even covering the min allowance at $0 (with standard deduction) is a lost year.
My retirement plan follows a similar logic to keep my tax bracket at 10 (or 12%) maximum even though I’m at 24% working today.
LTCG is 0% for taxable income up to $47,025:
[https://www.irs.gov/taxtopics/tc409](https://www.irs.gov/taxtopics/tc409)
Standard deduction gives you another $15,750 to play with.
If you have no other income I’d certainly suggest taking long term capital gains and possibly Roth conversions and/or IRA deductions (and any other taxable withdrawals) within these limits.
Just watch out for wash sales.