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A sure-fire way to avoid Capital Gains Tax is to donate the asset to a family member. The current tax laws allow you to donate up to $14,000 per year ($28,000 if married and filing jointly) without paying a gift tax. If you sell the asset at a later stage, the capital gain is paid by the new owner of the asset at his marginal tax rate. This strategy does not work if you donate to children or students under the age of 24, as these dependants pay tax at their parent’s tax rates.

assets capital gains tax

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