New Tax Law Expands 0% Capital Gains Opportunities in 2025

With the passage of President Trump’s One Big Beautiful Bill (OBBB), 2025 brings fresh opportunities for investors to manage their portfolios in a more tax-efficient way. The new law not only preserves the popular 0% long-term capital gains bracket but also expands the standard deduction—together creating meaningful planning advantages for many households.

Who Qualifies?

Under the new rules for 2025:

• Single filers: taxable income up to $63,150

• Married couples filing jointly: taxable income up to $98,700

Households within these ranges may pay 0% on long-term capital gains.

Why It Matters

The larger standard deduction—$15,300 for singles and $30,600 for couples—makes it easier for families to qualify for the 0% bracket. That means many investors can reduce or even eliminate capital gains taxes entirely.

Investor Opportunities in 2025

If you fall into these income ranges, you may want to consider:

• Harvesting gains tax-free to strengthen future flexibility

• Rebalancing your portfolio without triggering additional taxes

• Locking in gains or resetting cost basis at no tax cost

• Using tax-efficient withdrawals to fund retirement or cash flow needs

These strategies can be especially valuable for retirees and investors with taxable accounts.

What This Means for You

The OBBB is now law, which means these opportunities are available right now. However, every household’s circumstances are different. The benefit of realizing tax-free gains or rebalancing your investments will depend on your full financial picture, including income sources, deductions, and long-term goals.

At Pathworks Financial, we’re already working with clients to evaluate how best to take advantage of the new 0% bracket in 2025.

👉 If you’d like to review how this law applies to your situation, we invite you to schedule a time with us.