Long term capital gains get special treatment in the tax code. However, this special treatment tends to generate questions such as, will capital gains push me into a higher tax bracket? Or, what happens if my capital gain goes over the 0% rate threshold? This is a relatively technical subject that requires some foundational knowledge. We tackle it in this video with a few examples of how the ordering rules dictate the tax rate(s) when a taxpayer has multiple types of income.

If you have a capital gain in excess of $200,000, make sure you're aware of the NET INVESTMENT INCOME TAX. More on that here ➡    • NET INVESTMENT INCOME TAX explained w...  

Source for tax rates: https://www.irs.gov/filing/federalin...

My professional focus is retirement planning for individuals age 55+. Please visit my website or reach out for a complimentary planning session. Thanks for watching!

Ted Erhart, CFP®
Financial Planner
Anoka, Minnesota
www.norrislakeretirement.com
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Norris Lake Financial Planning is a SEC registered investment advisor able to conduct advisory business in states where it is registered, exempt or excluded from registration. All contents contained herein should not be construed as an offer or solicitation for investment advice or for the offer or sale of any security, insurance or other investment product. Data contained here is obtained from believed reliable sources, however, cannot be guaranteed. Investments contain a risk of loss. Please consult a qualified legal, tax or accounting professional before implementing any investment or strategy discussed.