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URL:  http://boards.fool.com/quot-all-that-happens-when-you-pass-the-magic-25320589.aspx

Subject:  Re: Penalty for reaching next tax bracket? Date:  3/23/2007  11:56 AM
Author:  straitarrow Number:  93225 of 121061

" All that happens when you pass the magic number of $61,300 is that your next dollar of earnings is taxed at 25% instead of 15%. Nothing happens to the dollars that have already been taxed. "


A further question, please...
If the earning of $1 above bumps one into the 25% bracket for the next dollar, what is the tax effect if the $1 is from LT Capital Gain from a stock sale?
Or, to make it more specific and interesting, consider a $100,000 or more LTCG over the $61,300 magic number.

Not that I intend to sell, mind you, just curious. I hope to let my stock cost basis step up at checkout time.
sa


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