Capital Gain Timing tax savings question - Tax Advisor
ITA says that selling $5,000 of stock in 2025 results in a tax savings in 2025 of $250. The taxpayer is in the 15% capital gain bracket. How do they get this? Normally, selling stock increases tax. Perhaps ITA is comparing a 2025 stock sale to a sale in 2026? There is no explanation except: Identify long-term capital assets you could possibly dispose of during a tax year when a projected lowest tax bracket will be applied. This wording is also preprinted in the tax plan for the client: Planning long-term dispositions while considering the maximum taxable income applicable to the zero and fifteen percent capital gains rates can help minimize taxation.
