Though this blog is usually about New Testament and theological topics, I (Ben) found out a tax trick related to investing that I’d never heard of, so I needed to post it somewhere. Every semester I give a lecture on retirement investing (moral of that story: start saving when you are 22!), so perhaps at least one of my students is reading this. If not, then you might benefit anyway, unintentionally. Plus, since theologians don’t make much money, we are more likely to benefit from this tax arrangement.
Basically, the story is this: if you fall in the 10% or 15% tax bracket, any long term capital gains are taxed at 0%! Taking you through several scenarios, this blog post explains the Mechanics of the 0% Long-Term Capital Gains Tax Rate.
Speaking of avoiding taxes, let me also remind readers of a great tip I received when I was heading off to PhD studies: convert any 401ks, 403bs, or IRAs to a Roth IRA while in school and you have little to no income, and that money will never be taxed.