No federal tax 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 |