If I decided to stop working and live on my capital gains and my long term capital gain is let's say $100,000. I will not have to pay federal tax because I'm in the 10% tax bracket ($0 taxable income). In other words, I'll keep $100,000 all to myself.
Is that correct?======>>>>>>>>>>no;you need to report your capital gain on sch D part 2 ; 8a, line 15,16, 17, on 1040 on line 13, 22,37, 38 and also you must Complete the Qualified Dividends and Capital Gain Tax Worksheet to calculate tax liability in the instructionsfor Form 1040, line 44
PS: I live in CA so I still have to pay CA state income tax on $100,000 but let's ignore state income tax in this scenario==========>>>>>>>>It so happens that your ordinary income tax bracket is calculated by adding your capital gains to your ordinary income. So in the example YOU gave in the question, those hundreds of thousands of dollars of capital gains income would put you in a high tax bracket, so you would have to pay capital gains taxes based off that tax bracket (probably 20% for long term and 39% for short term in the worst case scenario).