00:00You reduce capital gains tax liability through timing, account structure, and offsetting losses,
00:05not by eliminating it entirely, since aggressive avoidance schemes often cross into evasion.
00:12In the U.S., the clearest lever is the holding period. Assets held over 12 months qualify for
00:18long-term rates of 0%, 15%, or 20% depending on taxable income, 2024 thresholds, 0% up to $47
00:28,025
00:29single-slash-dollar-94, 0-50 married, 20% above $518, 900-slash-dollar-583, 750, versus short-term
00:40gains taxed as ordinary income up to 37%. Four practical mechanisms, ranked by typical impact.
00:481. Tax loss harvesting. Selling losing positions to offset gains dollar-for-dollar,
00:53with up to $3,000 per year deductible against ordinary income if losses exceed gains.
00:592. Tax-advantaged accounts. Four-01K, IRA, Roth IRA.
01:05Gains inside these grow tax-deferred or tax-free, but contribution limits.
01:10$23,000 for four-01K in 2024. Cap how much you can shelter.
01:163. The step-up in basis at death. Heirs inherit assets at current market value,
01:22erasing accrued gains. Entirely, relevant mainly for estate planning.
01:274. 1,031 exchanges. Deferring gains by reinvesting real estate proceeds into like-kind property,
01:34U.S.-specific and not applicable to stocks. Rules differ sharply by country. The UK has an
01:40annual CGT exemption. £3,000 for 2024-25, reduced from £6,000. Canada taxes only 50% of capital gains
01:50as income, and several jurisdictions, Singapore, they, impose no capital gains tax at all. So,
01:57location matters enormously if you have flexibility. I don't have confirmed 2025-2026 rate adjustments,
02:04so verify current thresholds before acting.
02:07Practical takeaway. Harvest losses before year-end. Hold appreciating assets past the
02:13one-year mark when feasible. Max out tax-advantaged accounts first, and consult a licensed tax
02:19professional for your specific jurisdiction and income bracket before executing any strategy.
02:24This is informational only, not tax advice. Finally, remember that everything we discussed
02:30today is for educational purposes only and does not constitute financial advice.
02:35Good luck to everyone, and see you in the next video.
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