Here's how to harvest 0% capital gains amid the latest stock market rally

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You can leverage the 0% capital gains bracket to harvest profits, rebalance your portfolio or save on future taxes. Here’s what investors need to know.

After a strong year for the stock market, tax-gain harvesting could help rebalance your portfolio and save on future taxes.

You can use the 0% bracket to reset your"basis" or original purchase price, by selling a profitable asset and then immediately repurchasing., involves strategically selling your profitable brokerage account assets during lower-income years. That could include early years of retirement or periods of unemployment.

These rates apply to"taxable income," which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income. You can also reset your"basis" or original purchase price, by selling a profitable asset and then immediately repurchasing, CFP Sean Lovison, founder of Philadelphia-area Purpose Built Financial Services, previously told CNBC.blocks the tax break if you rebuy a"substantially identical" asset within a 30-day window before or after the sale. But the same rule doesn't apply for harvesting gains.

 

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