Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
In 2020 I have some significant unrealized capital gains and am researching strategies to minimize my tax bill. I have a couple tax questions.

1. I am planning early retirement at the end of 2020. It looks like if I can keep my wife and my income under 80,000 for 2021, then we would fall in the 0% long term capital gains rate. Is that really the case that I would owe 0% on the very large capital gain?

2. I have read some conflicting information that capital gains is added to your regular income in figuring your income bracket. I don’t think that is the case. Can someone knowledgeable about this please confirm. Did it used to be this way, or is what I read just wrong?

3. Will things likely change in 2021? How quickly can a new administration change tax rules, and is that likely to happen in 2021. Would hate to retire from working to keep income under $80,000 and then realize the large long term capital gains in January 2021 only to realize later that the rules changed and I now owe a large capital gain tax bill.

Any help is appreciated.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.