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Capital gains tax rate for high gain/ low income

1 Answers. Asked on May 25th, 2016 on Taxation - Georgia
More details to this question:
Some of the capital gains tax proposals have a zero rate of capital gains tax for low income. If I take no salary for a year but then have a $5M capital gain event would this mean that no capital gains tax would be due? Or would the IRS factor treat the capital gain as part of income for the purpose of determining the capital gain tax rate?
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Answered on Jun 10th, 2016 at 11:15 AM

The capital gain is part of your income, and so if you have enough capital gain for that year, you'll still be in the higher capital gain rate bracket even if you have no other taxable income.

This answer is being provided as general information and not as legal advice. No attorney-client relationship is created by this answer.

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