This tip is for all my Self Employed small business owners: This is not a misprint. You can qualify for a 0% tax on long term capital gains. To qualify, your total TAXABLE income, net of deductions and exemptions, must be under: $36,500 for single filers or $72,500 for joint filers Moreover, it doesn’t have to be an all or nothing proposition. Thus, if your taxable income(without counting the capital gain) is $52,500 and you have $50,000 of long term capital gains ,which gives you a taxable income for joint filers of $102,500, you can still not pay tax on $20,000 . You would only pay 15% capital gains tax on the excess above the $72,500 in taxable income. Self employed people can take advantage of this by maximizing their deductions. If your taxable income will be too high in order to take advantage of the 0% rate, you can wait for future years where your taxable income will be lower OR you can transfer some of the capital gains property to your kids or grand kids and let them sell it. You can transfer up to $14,000 per year to people with no gift tax ( if married , you can transfer up to $28,000 per year to anyone with no gift tax). Also, if kids are under age 24, unmarried and full time students, they can only earn $2,000 of gains or investment income tax free. "CONTACT ME FOR MORE INFO,KNOWLEDGE IS ONLY POWER IF YOU USE IT"
Posted on: Wed, 18 Sep 2013 17:04:21 +0000
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