Hi,
For sake of simple math, lets assume that the 10 year treasury note is yielding 5%.
Lets say I want to invest in a 5% bond for ten years. But I want to delay my taxes as much as possible and I want to lower my yearly income as much as possible so that I can qualify for ACA subsidies.
Lets say I find a bond that matures in 2034, has a 1% coupon and is priced at $70 (face value is $100). So in ten years, it will mature and I will have a $30 gain.
Would this do what I intend? Which is:
1. Delay the bulk of taxes until the 10th year.
2. Lower my income for 9 years, then a big increase in year 10?
thank you
For sake of simple math, lets assume that the 10 year treasury note is yielding 5%.
Lets say I want to invest in a 5% bond for ten years. But I want to delay my taxes as much as possible and I want to lower my yearly income as much as possible so that I can qualify for ACA subsidies.
Lets say I find a bond that matures in 2034, has a 1% coupon and is priced at $70 (face value is $100). So in ten years, it will mature and I will have a $30 gain.
Would this do what I intend? Which is:
1. Delay the bulk of taxes until the 10th year.
2. Lower my income for 9 years, then a big increase in year 10?
thank you
Statistics: Posted by okie745 — Mon Jul 01, 2024 6:25 pm — Replies 5 — Views 425