How the New Tax Law Expands the 0% Capital Gains Window—And How Tax-Loss Harvesting Can Unlock It

A brand-new tax law—the One Big Beautiful Bill (OBBBA), signed on July 4, 2025—is delivering sweeping changes. Among its many perks, it quietly opens the door to the coveted 0% long-term capital gains rate for a wider swath of taxpayers. Here’s what that means for you, plus a savvy strategy—tax-loss harvesting—that can make those benefits even sweeter.

What Just Changed?

• The OBBBA kept lower TCJA individual tax brackets intact, raised the SALT deduction to as high as $40,000 (for many filers), and boosted the standard deduction.

• This means that more people now fall below the income thresholds that qualify for 0% long-term capital gains tax. In plain English: gaining without paying.

  
  

What’s the Current Capital Gains Tax Structure?

• 0% rate applies up to about $96,700 for joint filers / $48,350 for singles.

• Above that? 15% or 20%, plus the 3.8% Net Investment Income Tax when applicable.

  
  

Why the OBBBA Expands Access

By reducing ordinary income through higher deductions and lower rates, more taxpayers now qualify for the top of the 0% capital gains bracket. A powerful opportunity for investors.

Multiply Benefits with Tax-Loss Harvesting

• Selling poor-performing assets at a loss near year-end can offset realized gains.

• Up to $3,000 in excess losses can offset other income per year; the rest carries forward.

• This keeps taxable income—and capital gains tax—near zero.

  
  

Bottom Line

Together, the OBBBA and tax-loss harvesting strategies create a golden window: more taxpayers can enjoy 0% tax on long-term gains, plus the flexibility to strategically manage portfolios for tax efficiency. If you’re wondering how to apply these in your situation, consider teaming up with Turner Business Solutions.

Call Turner Business Solutions at (316) 285-0125 or schedule a consultation online.