The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: Greenbeard on October 02, 2013, 01:59:14 PM

Title: Death and Taxes, or maybe not taxes...
Post by: Greenbeard on October 02, 2013, 01:59:14 PM

I recently learned something that I'm sure many who've already retired may know.

If you earn under a certain amount, you pay zero federal taxes on capital gains.  That amount is very high, by mustachian standards, married filing jointly it's $70,700.

I feel like I should have know this already, but I didn't.  So I'm posting it here for those who also may not have know.

This plays a pretty big role in my early retirement calculations, since virtually all my income will come from capital gains.

http://www.bankrate.com/finance/taxes/no-capital-gains-due-for-some-investors-1.aspx

There are all sorts of tax advantages too, particularly when you drop your income even lower.  I wish there was some way to figure out the amount I should withdraw to maximize ALL possible tax credits, write offs and loopholes.