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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121217  
Subject: Re: Year-end and 0% Capital Gains, Basic Questio Date: 12/24/2013 3:11 PM
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Hypotheticals for single unemployed 30-yo US taxpayer, 2013:

earned income: $0
1099-DIV/INT income: $11,250


If there were any unemployment benefits received, there would likely also be income from a 1099-G that needs to be accounted for.

(1) If I'm understanding the 0% scenario correctly, this person should absolutely try to harvest $25,000 in long-term capital gains (the $36,250 limit - $11,250 above). From a Federal taxation perspective anyway;

If the taxpayer has a traditional IRA, converting some/all of it to a Roth IRA may actually be a better way to use the tax benefit, since long term capital gains are (currently) taxed at lower rates than the ordinary income rates that IRA conversions are taxed at.

AJ
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