Zero percent tax rate? It’s the truth — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Zero percent tax rate? It’s the truth

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. My accountant says that part of my capital gains qualify for a 0% federal tax rate this year. Is that possible? L.L., Bloomington, Minn.

A. Yes. Assuming you’ve held the property longer than a year (i.e., a long-term gain), the federal capital gains tax rate is 0% for taxpayers on gains that fall within the 10% and 15% tax brackets. The upper end of the 15% bracket for 2013 is $36,250 for single filers and $72,500 for married joint filers. For instance, if you’re a joint filer with $60,000 of taxable income from other sources, you can have up to $12,500 of long-term capital gains taxed at the 0% rate.

Tip: Take advantage of this tax break at year-end if you can squeeze in under the threshold.

Leave a Comment