Capital Gain Harvesting


Capital Gain Harvesting is a strategy discussed by Brad Barrett in the context of tax planning, particularly for managing long-term capital gains to minimize or avoid federal taxes. It involves selling assets that have appreciated in value and immediately rebuying them, hence increasing the cost basis without incurring taxes at a 0% tax rate. This process can be crucial for efficient tax planning, especially when combined with tax-efficient vehicles and the Roth conversion ladder, creating substantial tax advantages for individuals 1.

Brad further highlights scenarios using the foreign earned income exclusion and strategies like selling a chunk of assets to recognize gain, thus increasing the cost basis and effectively reducing long term capital gains taxes 2.

The strategy is particularly useful for a wide spectrum of people, from those earning modest incomes to those in higher income bands, maximizing the use of tax laws to enhance one's financial status by minimizing tax liabilities 3.

Capital Gains Harvesting

Jonathan discusses the game-changing benefits of capital gains harvesting and how it can be combined with tax-efficient vehicles and Roth conversion ladder to control tax rates and never pay federal taxes again. This episode provides valuable insights for wealth building and tax planning.


018 | Go Curry Cracker | Capital Gains, Losses and The Roth Conversion Ladder

For more detailed discussions and planning strategies regarding capital gains harvesting, Brad and his co-host Jonathan talk about various case studies and applications of these principles in various episodes of their podcast.