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by PopAlongKid
978 days ago
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You are tossing together several unrelated things here, not sure why. -federal zero L/T cap gains rate if taxable in come is low enough -- this has zero relevance to CA tax -different thresholds depending on filing single or married-joint (previous example was for single filer) -CA "effective" tax rate - while there is no single definition of this, it is clear that no one with an AGI of $100K has anywhere near a CA effective rate of 12%. |
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You are making some case that because California doesn't treat long term capital gains differently that it doesn't make much difference if you were taxed from realizing LTCG or ordinary income in California and your overall tax burden (federal + state) would be about the same.
I'm just pointing out if you're retired, you would naturally have a much lower tax burden if you realized LTCG vs $100k in ordinary income because the federal tax rate for LTCG would be so low for someone with no other income.