{"id":19918,"date":"2025-08-26T13:33:40","date_gmt":"2025-08-26T13:33:40","guid":{"rendered":"https:\/\/finderica.com\/?p=19918"},"modified":"2025-08-26T13:33:40","modified_gmt":"2025-08-26T13:33:40","slug":"who-qualifies-for-0-capital-gains-for-2025-under-trumps-tax-bill","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=19918","title":{"rendered":"Who qualifies for 0% capital gains for 2025 under Trump\u2019s tax bill"},"content":{"rendered":"
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dowell | Moment | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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With the stock market hovering near record highs, you may have\u00a0large profits sitting in a taxable brokerage account.\u00a0<\/p>\n

Upon selling, you could owe capital gains taxes<\/a>, levied at 0%, 15% or 20%, based on taxable income, if you own the assets for more than one year. There’s also a 3.8% surcharge for higher earners, which could bring the total rate to 23.8%.<\/p>\n

But many investors don’t realize they qualify for 0% capital gains, which is a chance to take some profits without triggering a tax bill.\u00a0<\/p>\n

“I’d say probably half of our clients are aware of it and understand the concept,” said certified financial planner Andrew Herzog, associate wealth manager at The Watchman Group in Plano, Texas.<\/p>\n

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President Donald Trump’s “big beautiful bill” didn’t change the capital gains rates. But new deductions could reduce taxable income for 2025, which could expand eligibility for the 0% bracket, experts say.<\/p>\n

Here’s what investors need to know about the 0% long-term capital gains brackets for 2025.<\/p>\n<\/div>\n

<\/a>Who is in the 0% capital gains bracket in 2025<\/h2>\n
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For 2025, you qualify for the 0% long-term capital gains rate if your taxable income is $48,350\u00a0<\/strong>or less for single filers, or $96,700 or less for married couples filing jointly.<\/p>\n

But many investors don’t realize there’s a big difference between gross earnings and taxable income. That gap could be even wider under Trump’s new spending package, said Tommy Lucas, a CFP at Moisand Fitzgerald Tamayo in Orlando, Florida.<\/p>\n<\/div>\n

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You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income<\/a>.<\/p>\n

Trump’s legislation increased the standard deduction from $15,000 to $15,750 for single filers and $30,000 to $31,500 for 2025.<\/p>\n

For example, if a married couple filing jointly earns $120,000, and you subtract the $31,500 standard deduction, their taxable income is $88,500. That leaves room to harvest gains at 0% before hitting the $96,700 limit.\u00a0<\/p>\n<\/div>\n

<\/a>A ‘game-changer’ for older investors<\/h2>\n
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Trump’s law also added a temporary $6,000 tax break ($12,000 for married couples) for older Americans ages 65 and over. The benefit falls once modified adjusted gross income exceeds $75,000 for single filers or $150,000 for married filing jointly.<\/p>\n

The new tax break is on top of the regular standard deduction, plus the extra deductions<\/a> for Americans who are ages 65 and over or blind.<\/p>\n

“That’s going to be a game-changer” for married couples who qualify for the $12,000 deduction because it further reduces taxable income, Lucas said.<\/p>\n

It’s a “golden opportunity” to sell some assets at 0% capital gains, or other tax strategies, he said.<\/p>\n<\/div>\n

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Investors can also use the 0% capital gains bracket to “reset their cost basis,” or the asset’s original purchase price, which can reduce future taxes, Herzog said.<\/p>\n

You can sell an asset tax-free, “and then just buy it right back,” to set the new basis, he said.<\/p>\n<\/div>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

dowell | Moment | Getty Images With the stock market hovering near record highs, you may have\u00a0large profits sitting in a taxable brokerage account.\u00a0 Upon selling, you could owe capital gains taxes, levied at 0%, 15% or 20%, based on taxable income, if you own the assets for more than one year. There’s also a<\/p>\n","protected":false},"author":1,"featured_media":6687,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[856,1118,113,4024,97,962],"class_list":{"0":"post-19918","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-bill","9":"tag-capital","10":"tag-gains","11":"tag-qualifies","12":"tag-tax","13":"tag-trumps"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/19918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19918"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/19918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/6687"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}