Here's the scenario. Can you let me know if I'm correct or not please?

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?

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.

Thanks

no;you need to report the LTCG of $100K on your 1040 line 13 and you need to pay CG tax of 15% as long as yur marginal tax rate is higher than 15% due to the LTCG of $100K. I guess you can follow the isntructions of 1040.

Thank you very much

Here's the scenario.

Let's say I have $100,000 and I bought mutual fund and now it's $150,000 so my long term capital gain is $50,000 (Assume there's no auto-reinvestment into the mutual fund).

Let's say I quit my job so I have salary of $0. If I withdraw $25,000 every year from the mutual fund for my living expenses. I don't have to pay federal and state taxes on this $25,000 because that's my cost basis right?

After 4 years, $25,000 * 4 = $100,000 (cost basis) then when I withdraw $ from the $50,000 capital gains then and only then that I will pay state and federal taxes.

Am I correct?

Thanks

it is correct

I know this is lat year question, but the answer you were given was incorrect.
There will be no takes on $100000 LTCG for a couple filing a joint return and taking the standard deduction. This is waht Turbo Tax says.

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).