Example:
A two wage-earner married couple with two kids have total salaries of $115,000 and itemized deductions of $35,100. Total ordinary taxable income is $63,900.
In addition, they have LTCG of $12,000 generated from sales of stock. The first $11,000 of LTCG ($74,900, the max 15% bracket income less $63,900) will be taxed at 0% with the remainder of $1,000 taxed at 15%.
Calculating capital gains can be tricky, but with the right guidance, you’ll be able to plan accordingly.
Contact your DS&J accountant to find out more about capital gains today.