Does the amount of the capital gain matter when figuring in the 2008 Capital gain Tax?

Question

in 2008, if you are in the lowest tax bracket, your capital gains will be taxed at 0%. My question is whether the amount of the capital gain realized matters in this scenario. If one had a large capital gain, would it be possible to pay the 0% federal tax on it if their wage income still left them in the low tax bracket?

Answer 1

No, they'd still pay something on any amount of capital gain that took them over the non-taxable limit for their filing status. If their total income, capital gain included, was less than that limit, then they wouldn't pay any taxes.

Answer 2

I hadn't heard approximately this suggestion. If it somewhat is genuine, it somewhat is frightening. 30% is loopy. If I money out my 1983 reductions bond worth $one thousand that fee $250, i could ought to pay yet another $225 in capital beneficial aspects tax. So i've got only tied up my money for 25 years for a earnings somewhat over 4%. Sorry Colleen, maximum economists do no longer agree that the tax improve from reducing tax fee is non everlasting. in reality the different is genuine. The tax receipts go through till the money strengthening the financial device is taxed in distinctive techniques. What economists "agree on" is of little magnitude. maximum politicians don't comprehend economics besides. you apart from could misquoted Warren Buffett. He pronounced he paid a decrease tax fee than his secretary. He supposedly paid 17.7% on his earnings which includes $7,820,000.00 earnings earnings tax. sure, that 7.eighty two MILLION earnings earnings tax.His secretary supposedly paid 30% on $60,000.00 or $18,000.00. The tax fee for individuals making $60k a 12 months isn't 30% so there ought to be yet another factor in touch in that fee. you could deny all you like that elevating the capital beneficial aspects tax won't harm nicely-known human beings yet you would be incorrect. i'm a nicely-known individual pondering 2 transactions genuine now. I surely have the reductions bond pronounced above and a few inventory worth $11,000 that I paid $2000.00 for better than ten years. If I sell them now i'll save $1725.00 in taxes while in comparison with the proposed Obama fee. i ought to apply that money to pay down theory on my own loan. many human beings think of like me and could sell stuff now to circumvent larger taxes later. this could have an instantaneous damaging result on tax receipts and interior the long term there will be much less money invested with the aid of fact human beings heavily isn't happy with the pathetic return on many of their investments. Older human beings cashing out retirement money would be taxed at a greater robust fee inflicting them to ought to eliminate greater money from bills just to conceal taxes. this could reason their bills to be depleted quicker. they're going to cut back their holiday and discretionary spending. Do you think of this could have a mind-blowing result on the financial device with all the individuals attaining retirement age or do you even care approximately those human beings? many human beings on fixed earning would be harm heavily harm. How is that elementary? the present device would possibly no longer tax the wealthiest sufficient yet it somewhat is the incorrect answer.