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Subject:  LT Capital Gains in Retirement Date:  12/3/2013  7:59 PM
Author:  nevercontent Number:  119620 of 129670

Hello everyone! I have a hopefully quick pair of questions: my understanding is that in 2014 there is a zero percent federal tax rate on long-term capital gains and qualified dividends for joint income less than $73,800. I'm looking to retire soon, and will initially be drawing down from a taxable account. We'll have almost no traditional income, though there will be some short-term capital gains from short sales (primarily written puts) -- but definitely far less than $73,800.

So am I correct that we'll pay zero federal taxes on qualified dividends and long-term capital gains? And if so, do the qualified dividends and long-term capital gains get factored into the $73,800 limit? e.g., if we earned $10,000 a year in options income and $80,000 in qualified dividends and long-term capital gains, would we still pay zero federal tax on the dividends and LT capital gains? Or do we need to keep the combined total below $73,800?

Thanks for the help!
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