How to Pay 0 Taxes on Capital Gains Tax

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Jun 3, 2019

Explore innovative strategies to minimize or even eliminate capital gains taxes. Discover the differences between short-term and long-term gains and how timing can dramatically impact your tax bill. Learn about tax-free home sales and the benefits of holding investments for over a year. Maximize your wealth through tax-advantaged accounts and dividends, while also mastering the art of tax loss harvesting. Gain insights into how a solid financial plan can make a significant difference in your financial future.

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INSIGHT

Hold Over 12 Months to Lower Tax

Holding an asset over 12 months reduces capital gains tax from ordinary income rates to long-term capital gains rates.
Income below $78,750 for married couples filing jointly can yield a 0% capital gains tax rate.

ANECDOTE

Client Paid Zero Capital Gains Tax

A client earning $63,000 from business sold a rental house and earned $30,000 capital gain.
By reducing income below $78,750 with tax strategies, he paid zero tax on that gain.

ADVICE

Hold Assets Over One Year

Avoid selling assets within 12 months to prevent paying higher short-term capital gains at ordinary income rates.
Just hold on to assets for over a year to benefit from reduced tax rates.

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