Taxpayers who are looking to reduce their tax burden can take advantage of the 0% rate on long-term capital gains by understanding the income limits and how it can be applied. Some important points to note include:

– The 0% rate applies to long-term capital gains on assets held for over a year.
– Single filers can apply the rate for taxable income of $44,625 or less, while married couples filing jointly can apply it for $89,250 or less.
– The rate is based on an individual’s taxable income, which takes into account deductions such as the standard deduction or itemized deductions.
– However, the concept of “stacking” needs to be considered, where ordinary income can impact eligibility for the 0% rate.

Overall, understanding the nuances of the 0% rate on investment income is essential for taxpayers looking to maximize their tax benefits and lower their tax liabilities.

You can read this full article at: https://papersourceonline.com/how-you-can-pay-a-0-tax-rate-on-capital-gains/(subscription required)

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