In a sabbatical, between jobs or early retirement, the 0% LTCG bracket lets you realise appreciated holdings tax-free and reset your cost basis.
0% LTCG bracket top: $96,700
Only part of your gains fit in the 0% bracket this year. Harvest the maximum that fits, repeat next year. Each tranche escapes the 15% bracket entirely once your basis steps up.
2025 LTCG brackets and standard deduction embedded. LTCG stacks on top of ordinary income for bracket purposes, your gains may push you into the 15% band even if ordinary income alone wouldn't. NIIT (3.8%) applies above $200k single / $250k MFJ. Not advice; consult a CPA.
Worth pairs the LTCG harvest with the Roth ladder and your full account stack so the bracket arbitrage fires every eligible year. Join the waitlist.
Yes. LTCG stack on top of ordinary income for bracket purposes. If you have $40k ordinary income (MFJ) and realise $70k gains, the first $56,700 of gains fall in the 0% bracket ($96,700 top minus $40k ordinary), the remaining $13,300 falls in 15%.
Yes. Taxable brokerage gains have no age restriction. Combined with the Roth conversion ladder, early retirees can realise real gains tax-free while also converting Traditional to Roth at low brackets. Both strategies fit cleanly alongside each other.
No. The wash-sale rule applies only to realised losses (you can't claim a loss if you re-buy the same security within 30 days). On gains, you can sell, immediately re-buy, and your cost basis steps up to the sale price. That's the whole mechanic.