https://www.nerdwallet.com/blog/taxes/capital-gains-tax-rates/ According to the link above, most people income bracket would make their capital gains tax rate at 15%. What happens if you make more money from trading than your normal job income , is your capital gain is still 15%? Actually, this wouldn't help me since I'm a daytrader. So I don't enjoy the long-term capital gains rate of 15% And short-term capital gains is taxed at your ordinary income rate. If your ordinary income bracket can still be in a lower income bracket than your net day trading gains right? Then you should still be taxed at your ordinary income braket right? just curious. I'm not there yet! Just thinking out... haha. LOL. Long way to go.
Everyone reads about Jeff Bezos salary being just $1. That means the rest of it is taxed at the capital gain rate. I'm no where near his situation. Just curious.
My point was NOT that I was Jeff Bezos. It is that some people rather take a LOWER income so they can convert their earnings to CAPITAL GAINS which in this country is taxed lower. But since he's one of the richest people on earth he can cut his salary to a nominal $1. But for us Average Joe, it can be similar in philosophy but not in actual amount. Right? People can be make however much they make a year. And be in that same tax bracket. But if they have a lot of short-term capital gains shouldn't that be taxed at the same rate at their normal salary. that's the main point I was trying to get at.
Talk to a professional - having said that - married filing joint get somewhere near $77,000 as no tax for long term gains.
I think you may be missing the fact that your long term gains are counted in the total income number, so if all your income is from capital gains and your income is $1M you aren't going to pay $0 in tax, or even 15%!
$1M in pure long term gains would be taxed at slightly over 20% for example. Easy enough to run your simple scenarios through this tax calculator. https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
No, I was thinking of short-term capital gains since I mostly daytrade. Supposed your job salary is $X but your short-term capital gains is 2X (or whatever amount that would push you into a higher income tax bracket) then shouldn't your capital gains tax rate be the same as $X your original tax bracket right? Because short-term capital gains are taxed at the ordinary income tax bracket. Get what I'm trying to say?