With the stock market hovering near record highs, you may have large profits sitting in a taxable brokerage account.
Upon selling, you could owe capital gains taxes, levied at 0%, 15% or 20%, based on taxable income, if you own the assets for more than one year. There’s also a 3.8% surcharge for higher earners, which could bring the total rate to 23.8%.
But many investors don’t realize they qualify for 0% capital gains, which is a chance to take some profits without triggering a tax bill.
“I’d say probably half of our clients are aware of it and understand the concept,” said certified financial planner Andrew Herzog, associate wealth manager at The Watchman Group in Plano, Texas.
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