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dowell | Moment | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
With the stock market hovering near record highs<\/a>, you may have\u00a0large profits sitting in a taxable brokerage<\/a> 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\u2019s also a 3.8% surcharge<\/a> for higher earners, which could bring the total rate to 23.8%.<\/p>\n But many investors don\u2019t realize they qualify for 0% capital gains<\/a>, which is a chance to take some profits without triggering a tax bill<\/a>.\u00a0<\/p>\n \u201cI\u2019d say probably half of our clients are aware of it and understand the concept,\u201d said certified financial planner Andrew Herzog, associate wealth manager at The Watchman Group in Plano, Texas.<\/p>\n More from Personal Finance:<\/strong> President Donald Trump<\/a>\u2018s \u201cbig beautiful bill\u201d<\/a> didn\u2019t 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\u2019s what investors need to know about the 0% long-term capital gains brackets for 2025.<\/p>\n<\/div>\n 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\u2019t realize there\u2019s a big difference between gross earnings and taxable income. That gap could be even wider under Trump\u2019s new spending package, said Tommy Lucas, a CFP at Moisand Fitzgerald Tamayo in Orlando, Florida.<\/p>\n<\/div>\n You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income<\/a>.<\/p>\n Trump\u2019s 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 Trump\u2019s law also added a temporary $6,000 tax break<\/a> ($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
\u2018Quiet cracking\u2019 at work is \u2018just as dangerous\u2019 as \u2018quiet quitting\u2019: Report<\/a>
This retirement option offers tax-free growth \u2014 but only 18% of investors use it<\/a>
Roth IRA vs. Roth 401(k) contributions: \u2018It\u2019s power versus freedom,\u2019 advisor says<\/a><\/p>\nWho is in the 0% capital gains bracket in 2025<\/h2>\n
A \u2018game-changer\u2019 for older investors<\/h2>\n