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Category

😹
Fun
Transcript
00:00Tax gain means intentionally selling things and investment that's gone up. We put in $10,000, now it's worth $15,000. We sell that. We've got $5,000 in gains, which in most circumstances is unappealing.
00:15I don't want to pay taxes on that. But when your overall income is at a low enough level, the capital gains tax rate is actually zero. That's my favorite tax rate. So is it taxable income? Yep, it is. And the rate that gets applied when you're in those lower two brackets, the capital gains rate is zero.
00:34So why not take something that, again, in the future, if I'm in a higher tax bracket, I sell those things and I pay 15%, let's say, capital gains tax. Today, I can sell, take those same profits and pay zero tax. Again, that's our favorite tax bracket, zero.
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