How To LEGALLY Avoid Capital Gains Tax

If you are considering selling something that you own, chances are is that it is worth something. And that worth is usually measured in terms of equity. And what's good about having equity is that you can borrow against it. And what's good about borrowing is that the borrowed proceeds are not considered taxable income. We see people do this all the time when they borrow money from their home using a HELOC for example, or their stock portfolio using a Securities-Backed Line of Credit or even from their business with a Business Line of Credit. Plus on top of that, you can even deduct the interest expense on the loan if you are using the proceeds towards another business or investment opportunity. Just comment borrow below if you want my in-depth video on this topic, but for now let's move on to another easy strategy here before we level this up a notch. A lot of people don't know this, but the IRS actually has a 0% tax bracket for long-term capital gains. When you hold your investment for at least 12 months, you can benefit from lower tax rates which are as low as zero to 20% based on your taxable income. And what's nice about taxable income is that it is your income after taking all of your deductions into account. You will be surprised, but I literally have seen people with millions of dollars of income take so many deductions on their tax returns that their taxable income actually qualifies for the 0% capital gains rate. And depending on what you're holding on to, you might choose to sell just enough of that investment to max out that 0% tax bracket before your gains start becoming taxable. Now, I do have a separate video that goes into great detail about how that is actually accomplished. So just comment 0% if you want to learn more about that.