Here's how much you can make in 2024 and still pay 0% capital gains taxes (2024)

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If you're planning to sell investments or rebalance brokerage assets next year, it's possible you won't trigger a tax bill for 2024.

The IRS on Thursday released dozens of inflation adjustments for 2024, including increases in income tax brackets, standard deductions and income thresholds for capital gains.

For 2024, there are higher thresholds for the 0%, 15% and 20% long-term capital gains brackets, applying to assets owned for more than one year.

"It's great from a tax planning perspective," said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida. "There's definitely an opportunity to take some gains next year."

If you're in the 0% capital gains bracket, you can sell long-term assets or rebalance your taxable portfolio without adding to your tax liability, he said.

How to calculate your capital gains tax bracket

You're more likely to fall into the 0% capital gains bracket in 2024 with higher standard deductions and capital gains income thresholds.

"A lot of people don't realize," Lucas said.

For 2024, you may qualify for the 0% long-term capital gains rate with taxable income of $47,025 or less for single filers and $94,050 or less for married couples filing jointly.

The standard deduction will rise to $29,200 in 2024 for married couples filing jointly, an increase from $27,700 in 2023, and single filers may claim $14,600, up from $13,850. The standard deduction is even higher if you're at least age 65 or blind.

However, many investors don't know that capital gains brackets use "taxable income," which is calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

"It's really quite a bit of capital gains you can receive without paying any tax," said certified public accountant Tom Wheelwright, CEO of WealthAbility.

For example, if a married couple earns $125,000 together in 2024, their taxable income may fall below $94,050 after they subtract the $29,200 standard deduction for married couples filing jointly.

Who may fall into the 0% capital gains bracket

There are several scenarios where higher earners may unknowingly fall into the 0% capital gains bracket for 2024, experts say.

For example, retirees who haven't started collecting Social Security income or required minimum distributions "absolutely should be looking at this," Wheelwright said, noting that $94,050 of taxable income is a "pretty big number."

You may also fall into the 0% capital gains bracket if you experienced a job loss or lower revenue as a business owner.

Here's how much you can make in 2024 and still pay 0% capital gains taxes (2024)


Here's how much you can make in 2024 and still pay 0% capital gains taxes? ›

For the 2024 tax year, individual filers won't pay any capital gains tax if their total taxable income is $47,025 or less. The rate jumps to 15 percent on capital gains, if their income is $47,026 to $518,900. Above that income level the rate climbs to 20 percent.

What is the income limit for 0% capital gains? ›

Capital gains tax rates

A capital gains rate of 0% applies if your taxable income is less than or equal to: $44,625 for single and married filing separately; $89,250 for married filing jointly and qualifying surviving spouse; and. $59,750 for head of household.

What is the capital gains threshold for 2024? ›

Long-term capital gains are taxed at 0%, 15%, or 20%, depending on a combination of your taxable income and tax-filing status. Single tax filers can benefit from the zero percent capital gains rate if they have an income below $47,025 in 2024.

How do I pay 0% long-term capital gains tax? ›

Long-term capital gains tax rates for the 2024 tax year

For example, if you're filing as an individual, you can earn taxable income of up to $44,625 in 2023 and qualify for the 0 percent rate. For 2024, that threshold for individuals rises to $47,025.

What are the new tax changes for 2024? ›

For tax year 2024, the standard deduction for married couples filing jointly rises to $29,200, an increase of $1,500 from 2023. For single taxpayers, the standard deduction rose to $14,600, a $750 increase from the previous year.

Who is exempt from capital gains tax? ›

When does capital gains tax not apply? If you have lived in a home as your primary residence for two out of the five years preceding the home's sale, the IRS lets you exempt $250,000 in profit, or $500,000 if married and filing jointly, from capital gains taxes.

Do you pay capital gains after age 65? ›

Whether you're 65 or 95, seniors must pay capital gains tax where it's due.

What is the 3 year capital gain rule? ›

Relevant Holding Period for Sale of a Carried Interest.

If a partner sells its “carried interest” in a partnership, the gain will generally be long-term capital gain only if the partner has held the “carried interest” for more than three years, regardless of how long the partnership has held its assets.

What is the 6 year rule for capital gains? ›

Usually, a property stops being your main residence when you stop living in it. However, for CGT purposes you can continue treating a property as your main residence: for up to 6 years if you used it to produce income, such as rent (sometimes called the '6-year rule')

What is the 5 year rule for capital gains tax? ›

If you've owned and occupied your property for at least 2 of the last 5 years, you can avoid paying capital gains taxes on the first $250,000 for single-filers and $500,000 for married people filing jointly.

What does 0 capital gains tax mean? ›

Key Takeaways

A zero capital gains rate incurs no taxation on the sales of assets or property that would otherwise have a capital gain.

How to avoid real estate capital gains tax? ›

Can You Avoid Capital Gains Tax On Real Estate? It's possible to legally defer or avoid paying capital gains tax when you sell a home. You can avoid capital gains tax when you sell your primary residence by buying another house and using the 121 home sale exclusion.

What counts as income for capital gains tax? ›

Capital gains are profits from the sale of a capital asset, such as shares of stock, a business, a parcel of land, or a work of art. Capital gains are generally included in taxable income, but in most cases, are taxed at a lower rate.

Will 2024 tax refund be bigger? ›

After a slow start to the 2024 tax season, the average tax refund this year is now up to $3,070, a 6% increase from this time in 2023.

What is the tax Relief Act 2024? ›

TAAHP is closely monitoring the progress of The Tax Relief for American Families and Workers Act of 2024 bill, a significant piece of legislation with implications for the industry. The bill aims to provide relief for families and workers across the nation, addressing critical economic challenges.

What are the new 1099 rules for 2024? ›

H.R. 7024 would increase the reporting threshold for the 1099-MISC and 1099-NEC from $600 to $1,000 for payments made on or after January 1, 2024. For future years, this threshold would be tied to inflation. The bill would also decrease the reporting threshold for payments of direct sales from $5,000 to $1,000.

Why are capital losses limited to $3,000? ›

The $3,000 loss limit is the amount that can be offset against ordinary income. Above $3,000 is where things can get complicated.

What is capital gains tax on $50,000? ›

Long-Term Capital Gains Taxes for Tax Year 2024 (Due April 2025)
Single Filers
Taxable IncomeRate
$0 - $47,0250%
$47,025 - $518,90015%


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