Today we’re going to focus on a specific tax planning strategy called “Capital Gains Tax Harvesting”. This strategy isn’t for everybody; however, if you meet the following criteria then you should seriously consider it:
- Between the ages of 60 and 70
- Haven’t started the required minimum distributions from your IRA account yet
- In the 15% federal tax bracket
- Have a retail investment account with long-term capital gains “This can be a very useful tool for the right person.”
If you check off these boxes, then you need to consider capital gains tax harvesting before the end of the year. When you’re in that 15% tax bracket, you pay $0 in federal taxes on the capital gains you realize. This is a very powerful strategy that you can use to increase your spending money, or reinvest right back into the same investments.
If you think this strategy might be a good idea for yourself or for someone you know, give me a call or send me an email. I would love to hear from you.