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16 days agoA better way to think of it is <$250k 50% of the profit is tax-free. >$250k only 34% of it is tax exempt.
A better way to think of it is <$250k 50% of the profit is tax-free. >$250k only 34% of it is tax exempt.
First, the bump to 66% only happens after 250k that year so $25k would not trigger the extra 16% eligibility. So standard 50% CG only would be applied. $12.5k taxed at your rate means the min rate which may be something like 20% (this number is a wild guess) so say $2500 paid to the gov. Not as bad as it sounds.
2023 people.
IF it was forced to be in the 66% CG bracket $16.5k would be taxed at the previously posited 20% resulting in $3300 paid to government so it is a respectable jump in tax owed for those being subjected to it.