For them, the sale of appreciated capital assets should be structured to occur from 2008-2010, when most long-term capital gains
are tax free for income normally taxed in the 15% tax bracket or lower and below the kiddie tax unearned income threshold; see Sec.
Adjusted net capital gain
is the net capital gain
for the tax year (the excess of net long-term capital gains
over net short-term capital losses) less:
A The good news is that, due to the Taxpayer Relief Act of 1997, it is quite possible that you may not owe any capital gains
taxes at all from the sale of your home.
The reduction in the tax rate on dividends and capital gains
might cause one to re-think efforts to shelter long-term investments from tax within a Roth IRA or a tax sheltered annuity to take advantage of tax-free appreciation.
With favorable changes in the capital gains
tax, most sellers can now make a tax-free profit on the sale of their homes.
And so, in the spirit of historical inquiry, I set out to compare a century's worth of data on economic growth with the marginal tax rates on the top bracket of income and the capital gains
taxes in the same periods.
9) ASARCO (a New York-based corporation) was engaged in silver mining in Idaho and received dividends, interest, and capital gains
from nontaxpayer subsidiaries engaged in the same general line of business.
Thus, if there is a vertical carve-out, the second factor--character of the asset--determines whether the sale proceeds should be taxed as ordinary income or capital gain
1, 2009, are subject to a maximum rate of 15 percent, the same tax rate applicable to long-term capital gains
This decision is a potentially devastating blow to capital gains
treatment because it suggests litigation proceeds can never be capital in nature.
For example, if you sold stock at a $10,000 profit, you'll likely owe $2,000 in federal income tax at a 20% long-term capital gains
The Taxpayer Relief Act of 1997 changed the way real estate capital gains
taxes are calculated, allowing new opportunities in certain cases for sellers to take advantage of today's hot real estate market and retain more of their gains.