The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/thanks-phil-could-you-expand-a-little-on-why-lt-21690218.aspx

Subject:  Re: staying in 15% bracket Date:  12/2/2004  6:24 PM
Author:  lethean Number:  74372 of 131788

Thanks Phil.

Could you expand a little on why LT capital gains influence the tax bracket if they are supposed to be taxed at either at 5% or 15%?

Also, I thought the max SS would affect my scenario as opposed to the original. But, if I understand you correctly then AGI minus SS is the nut for IRA and capital gain income?. (SS entirely taxed in 15% bracket?)

Maybe it would be easiest for me to understand if given $0 IRA income, $75,900 capital gains, no SS. Is the tax 5% or 15%?

I'm really mixed up. Believe it or not, I entered taxes for a CPA 10 years ago. I think TT is throwing me. I'm used to entering data directly? not through questions. I'm using the "free 2003" version of TT.

I would like to be able to enter various data assumptions (not through questionaire) and see/print the different results. Do I need to buy the 2004 TT to experiment like that? enter data directly? (I won't file using TT for 2004. Still need a professional for a few more years.)

Finally, what are your thoughts on how to use the 2008 window for zero capital gains tax? That's amazing. 30 day wash rules apply, I assume.

Couldn't one sell all positions and rebuy 31+ days later, generating no tax and a higher basis for future selling? Or at the least, plan to use a cash position in 2008 to buy more of a current holding, wait 31+ days, and then sell the lower basis shares, thereby paying no tax on sale and still owning position at a higher basis? I'm kind of surprised there isn't more discussion about this 2008 tax quirk now.

Recap: I'd like to be able to do "what ifs" without doing a spreadsheet. Is that possible without going through a long questionaire then losing the data when new assumptions entered? With the trial TT, if you want to print result, you must buy the program.

Any way around buying something I'm never going to use. I don't plan to file my own taxes until maybe 2008. (Sole proprietor now and want the CPA signature on return.)

I'm sorry for the length of this post. I'll appreciate anything you care to comment on.

Lethean















Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us