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So if I am looking to realize a $500 000 capital gain then I should
quit working for that year or find a job that pay very little and
only pay a 10% capital gains tax. No?

Absolutely. This is very nice loophole to exploit. In the wisdom of the government, your wealth is determined by payroll income of the current tax year and not investment wealth/gains.

So you can be rich, but with little or no earned income. And qualify for breaks all over the place (property tax relief, state tax homeowner rebates, etc. ) because the government determines wealth by current earned income.

So the trick to financial freedom is to amass enough gains, quit your job, and live "poor".

Isn't this a great country?


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