|
The Motley Fool Discussion Boards
|
Previous Page | |
|
Financial Planning / Tax Strategies |
||
|
URL:
https://boards.fool.com/when-you-leap-from-one-bracket-to-the-next-11613467.aspx
|
||
| Subject: When you leap from one bracket to the next | Date: 12/6/1999 12:34 AM | |
| Author: neilandrews | Number: 22339 of 132160 | |
|
Howdy Fools, I understand that the capital gains tax rate (for those in the 15% bracket) who hold their stocks for more than a year is 10%. What I can't figure out is this: What if the income generated from capital gains puts one OVER the 15% tax rate into the next tax rate? That is, say I'm just a few thousand dollars over the 15% tax bracket because of my capital gains. Should I sell long or short? I'm in this situation because, as a student, most of my income comes from dividends, interest and cap gains. And the cap gains may be just enough such that I make it into the next income bracket. Being in the 15% bracket, it's clear that I should hold for at least a year and a day. But if I'm nudged just a bit into the next bracket by my capital gains, what should I do--hold for less than a year or for more than a year? --Neil |
||
| Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us | ||