{"id":8127,"date":"2024-11-18T21:05:02","date_gmt":"2024-11-18T21:05:02","guid":{"rendered":"https:\/\/finderica.com\/how-to-leverage-the-0-capital-gains-bracket-as-bitcoin-surges\/"},"modified":"2024-11-18T21:05:02","modified_gmt":"2024-11-18T21:05:02","slug":"how-to-leverage-the-0-capital-gains-bracket-as-bitcoin-surges","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=8127","title":{"rendered":"How to leverage the 0% capital gains bracket as bitcoin surges"},"content":{"rendered":"<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108064494\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Hispanolistic | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Crypto investors could face higher taxes amid the surging price of <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-2\">bitcoin<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>. But if you&#8217;re in the 0% capital gains bracket, you can reduce future taxes with a lesser-known strategy, experts say.\u00a0<\/p>\n<p>The tactic, known as\u00a0tax-gain harvesting, is selling profitable crypto in a lower-income year. You can leverage the 0% long-term capital gains rate \u2014 meaning you won&#8217;t owe taxes on gains \u2014 as long as earnings are below a certain threshold. The 0% bracket applies to assets owned for more than one year.<\/p>\n<p>&#8220;That&#8217;s a very effective strategy if you&#8217;re in that bracket,&#8221; said Andrew Gordon, a tax attorney, certified public accountant and president of Gordon Law Group.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"SpecialReportArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">More from FA Playbook:<\/h2>\n<div class=\"group\">\n<p>Here&#8217;s a look at other stories impacting the financial advisor business.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The income limits for 0% capital gains may be higher than you expect, Gordon said.<\/p>\n<p>For 2024, you qualify for the 0% rate with taxable income of $47,025 or less for single filers and $94,050 or less for married couples filing jointly. The brackets are higher for 2025.<\/p>\n<p>You calculate taxable income by subtracting the greater of the standard or itemized deductions from your <a href=\"https:\/\/www.irs.gov\/filing\/adjusted-gross-income\" target=\"_blank\" rel=\"noopener\">adjusted gross income<\/a>. Your taxable income would include profits from a crypto sale.<\/p>\n<\/div>\n<div class=\"group\">\n<p>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.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline0\"><\/a>Use the 0% bracket to reset your basis<\/h2>\n<div class=\"group\">\n<p>You can also use the 0% capital gains bracket to reset your &#8220;basis,&#8221; or the original purchase price of crypto, according to Matt Metras, an enrolled agent and owner of MDM Financial Services in Rochester, New York.<\/p>\n<p>If you&#8217;re in the 0% bracket, you can sell profitable crypto to harvest gains without triggering taxes. Then, you can repurchase the same asset to maintain your exposure.<\/p>\n<p>However, experts suggest running a tax projection to see how increased income could impact your situation, such as phaseouts for tax breaks.<\/p>\n<\/div>\n<div class=\"group\">\n<p>The price of bitcoin was hovering around $90,000, up more than 100% year-to-date, as of the afternoon on Nov. 18. The value briefly hit a record of $93,000 last week in a post-election rally.<\/p>\n<p>It&#8217;s obviously hard to predict future price increases. However, some investors expect a boost under President-elect Donald Trump, who promised\u00a0pro-crypto policies on the campaign trail.<\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2024\/11\/18\/capital-gains-bitcoin.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hispanolistic | E+ | Getty Images Crypto investors could face higher taxes amid the surging price of bitcoin. But if you&#8217;re in the 0% capital gains bracket, you can reduce future taxes with a lesser-known strategy, experts say.\u00a0 The tactic, known as\u00a0tax-gain harvesting, is selling profitable crypto in a lower-income year. You can leverage the<\/p>\n","protected":false},"author":1,"featured_media":8128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[1381,1120,1118,113,1437,2549],"class_list":{"0":"post-8127","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-bitcoin","9":"tag-bracket","10":"tag-capital","11":"tag-gains","12":"tag-leverage","13":"tag-surges"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/8127","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=8127"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/8127\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/8128"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}