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Subject:  Re: Retroactive changes to tax rates Date:  5/15/2021  1:43 PM
Author:  MakingTrax Number:  132702 of 133017

rrwfl45 writes:

Most of us who have stock holdings that we would sell and have long term capital gains will also have qualified dividend income....don’t these get added to the lt capital gains in figuring the 0%,15%,20% brackets?? I don’t see this addressed in this thread.

That's true. Most folks with a large taxable stock (& bonds for diversification) holding account probably also generate some interest and unqualified ordinary dividend that also get taxed as regular income. Sometimes the amount in all those categories can be sizable and definitely need to be taken into account while managing both the income brackets and the capital gains brackets.

The examples/calculations provided in the thread offer a very basic and simplified explanation. Footsox would need to provide more detail to get into the nitty gritty of sorting out cost basis, short vs long holdings, dividend categories, etc. for his specific scenario.

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