With smart planning, many investors can legally pay zero capital gains tax. The key is understanding the 0% bracket and strategically harvesting gains.
Zero Capital Gains Strategies
- 0% bracket: $0 tax on gains if taxable income under $47,025 (single)
- Tax-gain harvesting: sell and rebuy in low-income years
- Charitable giving: donate appreciated stock (no cap gains + deduction)
- Step-up basis at death: heirs pay no gains on inherited assets
- Opportunity Zone investing: defer and reduce gains
Retirees with low taxable income can strategically sell investments in the 0% bracket. A married couple can realize up to $94,050 in long-term gains completely tax-free.
