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Financial Planning / Tax Strategies


Subject:  Capital Gains Date:  11/30/2010  3:33 PM
Author:  ORA100 Number:  111536 of 127753

My mother in law is single and has a small taxable account where she has some long term capital gains. She gets social security and has a small pension. She is in the 15% tax bracket. If she sells the taxable investments and then immediately buys them back she can take the capital gains which would be taxed at 0% this year and increase her cost basis but still stay in the 15% bracket. Is there any reason she shouldn't do this this year especially because the capital gains tax may increase next year? Thanks for the help.

For a more general question if a married couple or single in the 10 or 15% tax bracket takes long term capital gains and stays in the 10 or 15% bracket so the LTCG is taxed at 0% - doesn't that make sense?

Thanks for the help.
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