When working on tax planning, which brackets should you aim for? These three have distinct advantages!
1) 24% Tax Bracket: When planning how to space out tax deductions and depreciation, aiming for the 24% bracket can be a good goal. There’s a big jump up to the 32% tax bracket, but the next tax bracket down only drops to 22% - it might be better to save those extra write-offs until the next year to again drop your income from the 32% bracket to the 24% bracket instead of saving an extra 2% this year.
2) 0% Capital Gains Tax Limit: If your income is lower, you can earn all of your capital gains tax-free by staying under these total income amounts!
3) 15% Capital Gains Tax Limit: If your income is a bit higher, staying in this income range will allow your capital gains to be taxed at the 15% rate rather than bumping up to the 20% rate.
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