Last Chance for 0% Capital Gains?

A special tax break for small investors could fall victim to tax reform next year. The final days of 2016 may be your last chance to cash in.

(Image credit: oatawa)

Attention taxpayers who fall in 10% and 15% federal tax brackets ... and that’s most of you: If you own stocks, mutual funds or other investments in a taxable account, it’s critically important to review your portfolio before the end of the year. If you have unrealized long-term capital gains – which are built-up profits on investments you have owned more than one year – selling before the markets close on December 30 could wipe out the tax bill on those gains.

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Kevin McCormally
Chief Content Officer, Kiplinger Washington Editors
McCormally retired in 2018 after more than 40 years at Kiplinger. He joined Kiplinger in 1977 as a reporter specializing in taxes, retirement, credit and other personal finance issues. He is the author and editor of many books, helped develop and improve popular tax-preparation software programs, and has written and appeared in several educational videos. In 2005, he was named Editorial Director of The Kiplinger Washington Editors, responsible for overseeing all of our publications and Web site. At the time, Editor in Chief Knight Kiplinger called McCormally "the watchdog of editorial quality, integrity and fairness in all that we do." In 2015, Kevin was named Chief Content Officer and Senior Vice President.