3 tax-planning hacks to make before the end of the year

Bill Bischoff
3 tax-planning hacks to make before the end of the year

If so, consider giving them some appreciated stock or mutual fund shares which they can then sell and pay 0% federal income tax on the resulting long-term gains. As long as the dividends fall within the gift recipient’s 0% rate bracket for LTCGs and dividends, the dividends will be federal-income-tax-free. It turns out you can be doing pretty well income-wise and still be within the 0% bracket for LTCGs and qualified dividends.