Investors and financial planners are buzzing about the potential for avoiding capital gains tax in 2024, as the IRS released inflation adjustments, including increases in income tax brackets, and income thresholds for capital gains.
Certified financial planner Tommy Lucas emphasized the opportunity to take gains next year and the prospect of selling long-term assets or rebalancing taxable portfolios without adding to tax liability, especially for those in the 0% capital gains bracket.
With higher standard deductions and capital gains income thresholds, many may qualify for the 0% long-term capital gains rate in 2024. For instance, single filers with taxable income of $47,025 or less and married couples filing jointly with $94,050 or less could be eligible for this 0% bracket.
However, the calculation of taxable income by subtracting deductions from adjusted gross income could mean that even higher earners might fall into the 0% capital gains bracket. Retirees, individuals who have not started collecting Social Security income, or experienced job loss may also find themselves qualifying for this bracket.
Overall, the looming changes in tax brackets provide an attractive prospect for those looking to minimize tax liability and seize financial opportunities in the upcoming year.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
