Let’s talk about one of the most misunderstood phrases in personal finance: “0% capital gains tax.”
It sounds like a loophole. A cheat code. Free money with a wink from the IRS.
And every year, thousands of people confidently sell investments thinking they qualify… only to find out later that they absolutely did not.
This is the 0% capital gains trap — and it usually snaps shut because of income stacking, dividends, and Social Security. Quiet stuff. Sneaky stuff. The kind that doesn’t feel like income until it suddenly is.