Podcast Episode 26 – How to Take Advantage of the New Tax Bill 2

In this episode I talk about how to use the higher standard deductions in conjunction with the favorable capital gain rates to reduce taxes.

If you are in the 10-12% tax brackets… AND REMAIN THERE, you pay no tax on your long term capital gains!

This could be a huge strategy for those who have appreciated positions they were hesitant to diversify because of the tax potential.

Remember, your taxable income is AFTER deductions.

If you’re married and have $70k of gross income after standard deductions you have $46k of taxable income, putting on the low end of the 12% bracket.

In this case you can have around $30k of capital gains before you have to pay tax on them. Take advantage!

I also show you what to look at in your tax return to begin the evaluation of your potential gains in using the tax code.

1040 Lines 8, 9 and 13
Schedule B
Schedule D line 14

Know the numbers on these pages!

Song of the day – Clutch – Escape From The Prison Planet

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