Question about long term capital gains tax

Let's say I buy an altcoin for 10000 USD, hold for more than 1 year and it becomes 1 million USD. If I quit my job during this time and remain unemployed on purpose to stay in the lowest tax bracket, I pay no taxes at all when I cash out the 1 million?

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No retard your tax rate is income, capital gains are income just taxed differently

In the US, you don't pay taxes on long term gains if you're in the first 2 tax brackets.

If I remain in the lowest tax bracket the long term capital gains tax is zero, you are mixing up short term and long term, I just made this topic for further clarification.

but the gain takes you out of those brackets you utter moron

Your income includes whatever you take as capital gains too. you could earn $0 for a year and cashout $1mil and sitll be in the top tax bracket...

Yeah....if you make a mil you arent in the lowest bracket dipshit youd have to cash out under 11k or whatever it is

I see, I thought the two were separated.

This is wrong. Your bracket is determined by gross income, which includes taxes from all sources, including capital gains.
You then use that bracket to determine the % you pay on those gains.

which includes *income from all sources

So your cap gains tax is based on your cap gains tax

Do you even realise what you wrote, fuck off

realized gains count as income.

Hey goys you better pay your taxes!

Put your baby's foreskin onto buttcoin.tax and we'll take care of it for you :D

I think what he's trying to say is cap gains tax kick in after you cash out and declare your gains as income.

So say you make $0 as an unemplyed NEET but you struck gold with crypto and managed to become a millionaire. You convert the 1 million into cash and that automatically turns into your income. At that point, you would fall into the highest tax bracket because you'll have to report 1 million in income. After that, capital gains tax would kick in based off that 1 million dollar income.

Expect to be hit with the max percentage no matter how much you take out. They wont want to look at your trade history and will probably have a heart attack at the idea from severe PTSD when dealing with other crypto people.

This is how it works, this isnt what he wrote.

Since I held for more than a year the max the IRS can hit me with is 20% right?

Why would they be separated?

Income is income regardless of the source. Did you think venture capitalists don't need to worry about it? What about day traders?

You're right, illogical thinking on my part.

Depending on the state you live in and how good your CPA is, you could get away with zero taxes at all, as the coins you own and trade out could be considered as like items under the tax codes.

Again, discuss this with an actual CPA first, but direct transfers of cash into silver and gold bullion is non-taxable as they by federal law like items.