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Non-Tech : Kirk's Market Thoughts
COHR 198.51+0.4%3:59 PM EST
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To: Elroy who wrote (12258)10/26/2021 7:31:29 PM
From: Kirk ©  Read Replies (1) of 26763
 
Huh?
Because as the previous poster mentioned, people in that situation often end up quitting their $1M per year job, thus paying zero future income taxes, and live off of the $10M per year of tax free unrealized capital gains.
That is 100% wrong.

In CA capital gains are taxed as ordinary income.

Quit your job and live on the capital gains and you pay up to 13.3% tax on whatever you cash in to "live on."

Same at the federal level you will pay the capital gains tax which Obama made fairly high for high earners.

There is also a sliding scale at the Federal level... if you are low income, like getting SS and then taking $10K a year out of MSFT or LRCX to live on maybe $50K a year... then you pay ZERO taxes on the first $10K of capital gains. I may have the cutoffs off a bit but that is how it should be... encourage people to save for retirement. You might have to pay taxes on some of your Social Security income if you take enough capital gains...
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