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0% Long Term Capital Gains Tax
If Jeff waits one year and a day to sell, then he pays 0% on the capital gains. Why? Because total income is $40,000 from his day job plus 2,000 in capital gains. So that's $42,000, which is below the $44,625 threshold for single people to pay 0% long term capital gains tax. Can you all live off that type of income? I sure as heck can. If I was single or if I was married couple with no mortgage debt, no consumer debt, simple lifestyle, decent lifestyle,. not bad even with a couple kids.