November 2014

21 Nov

Tax Loss Harvesting

A useful year-end move to counteract capital gains.

Even though 2014 may end up being a subpar year for stocks, you may realize short-term capital gains. What will you do about them? You could do what many savvy investors do—you could "cash in your losses" and practice tax loss harvesting.

13 Nov

A Long-Term Capital Gains Strategy for 2014

Long-Term Capital Gains Tax Basics

  • Your long-term federal capital gains tax rate is 0%, 15% or 20%, depending on your marginal tax bracket.
  • If your taxable income is between $36,900 and $400,000, your capital gains will be taxed at the 15% rate. If you are married filing jointly, the 15% range is between $73,800 and $450,000 in taxable income. Folks in the lowest two income-tax brackets will pay 0% on investment income. Single filers with taxable income over $400,000 and married couples filing a joint return with taxable income over $450,000 will have their long-term capital gains taxed at 20%.