News for hackers. Stuff that matters.
Re:We are publishing the tax secrets of the .001% by HWR_14 on Tuesday June 08, 2021 @06:53PM (#27442140)
>There's no magic threshhold of $500k.

In the US in 2021 (aka, right now) the magic threshold for capital gains is $445,850-$501,600 depending on filing status. So you're technically correct that $500k isn't a magic threshold, but it's certainly in the middle of it.

But more importantly, you're going down a technical rabbithole. The point of this comment chain is "what happens to people experiencing a one-time windfall capital gains of $500,000". The response was "what about RH investors". My point was they weren't making 500k, so it was irrelevant that they made income taxed as a capital gain. And I stand by that.

Re:We are publishing the tax secrets of the .001% by dragonwriter on Tuesday June 08, 2021 @10:02PM (#27443408)
> In the US in 2021 (aka, right now) the magic threshold for capital gains is $445,850-$501,600 depending on filing status.

No, its not.

The transition point between the top (20%) and middle (15%; the bottom is zero) marginal rate of long-term capital gains rates are either exactly the top or bottom of that range for 3 of 4 tax filing statuses (you left off married filing separately, which is much lower than even the low end), but that’s not a “magic threshold” by any reasonable definition.

Re:We are publishing the tax secrets of the .001% by HWR_14 on Tuesday June 08, 2021 @11:30PM (#27443914)
It's both a magic number and a threshold. Married filing separately is just 1/2 of married filing jointly, which is how it should be.
Re:We are publishing the tax secrets of the .001% by dragonwriter on Tuesday June 08, 2021 @11:37PM (#27443954)
> It's both a magic number and a threshold

Its a threshold, but not one below which capital gains stops mattering, which was the significance falsesly ascribed to the “magic number".

If you had cited the bottom of the 15% bracket instead of the top as the magic number below which cap gains don’t matter, well, “magic” would still be overdramatic but you would at leaast have something of a point. But that’s close to an order of magnitude lower.

Re:We are publishing the tax secrets of the .001% by HWR_14 on Wednesday June 09, 2021 @12:14AM (#27444156)
It's also irrelevant as I called out in my post. The question was "how do we tax average people making a windfall of 500k", not "let's talk exclusively long-term capital gains"
Re:We are publishing the tax secrets of the .001% by WalterBright on Tuesday June 08, 2021 @09:54PM (#27443347)
> they weren't making 500k, so it was irrelevant that they made income taxed as a capital gain

Sorry, but capital gains taxes start at $15,000.

Re:We are publishing the tax secrets of the .001% by dragonwriter on Tuesday June 08, 2021 @10:03PM (#27443416)
> Sorry, but capital gains taxes start at $15,000

Long-term capital gains less than $40,400 (or higher, depending on filing status) have a 0% rate.