Hi all,
I've read Go Curry Cracker's tax articles and want to make sure I understand correctly.
I'm referencing this section of Never pay taxes again:
"Using the 2018 tax rules, a married couple can earn up to $24,000 a year without paying tax. This is because the government allows us a standard deduction for a married couple of $24,000. Other deductions can be applied, such as for 401k contributions, increasing the amount of tax free income. (That advice from the big brokerage firm hit the spot on this one.) Normally the deductions are increased every year with inflation or some arbitrary level decided by Congress
Once income and spending exceeds this level, taxes must be paid. Unless…
Unless that income comes from qualified dividends or long term capital gains. In this case, a married couple can have $24,000 a year in income AND $77,200 in investment income, TAX FREE (if that isn’t a strong signal to not work, I don’t know what is.)"
I'm a single filler who earns about $40k in taxable income...
The capital gains tax bracket for 2019 15% $39,375
As long as I'm under the 2019 threshold of $39,375, I can sell $39,375 worth of stocks at 15% tax?
I want to sell some stock this year. How can I pay the least amount of tax possible?
I'm honestly pretty confused and if some seasoned Mustachians could help me out that would be greatly appreciated.