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$0 federal tax on long-term stock gains ends Dec. 31 for some retirees
A key window for retirees with unrealized long-term gains can close at year-end, and the plan may also be affected as required minimum distributions begin at age 73.
Yahoo Finance highlights a year-end opportunity for some retirees filing jointly to realize long-term stock gains at a 0% federal rate, noting the window closes at midnight on December 31.
The article describes a scenario in which a couple with a taxable brokerage account holding about $52,000 in unrealized long-term gains on an S&P 500 index fund could potentially owe no federal tax if they sell appreciated shares before year-end.
It also explains the strategy of selling appreciated shares and immediately repurchasing them to reset cost basis higher at zero tax cost, adding that wash-sale rules generally apply to losses rather than gains.
The piece links the opportunity to timing, saying required minimum distributions start at age 73 and that a projected 3.3% Social Security cost-of-living adjustment in 2027 could tighten the window by raising income levels.
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