Ive read that 2008 capital gains tax rates will be 0% for those in the 10% & 15% brackets. Where can I get more information on this including income limitations?
Thank
Ive read that 2008 capital gains tax rates will be 0% for those in the 10% & 15% brackets. Where can I get more information on this including income limitations?
Thank
For all the necessary 2008 numbers see the 2008 Form 1040-ES. For the calculation method, see the 1040 instructions.
For a more up-to-date article, also a little easier to read because it's shorter and not written for CPA's, try this, or else just search the Internet, there are plenty of articles.
If you haven't been able or willing to take advantage of the current 5% capital gains rate, I suspect the 0% rate won't work for you either, since the rules are the same. Also remember that some states have no special capital gains rate, so suddenly selling your stocks may backfire in more ways than one. For example, where are you going to park the sales proceeds where they won't generate increased taxable income in subsequent years? Or, will a significant increase in selling drive down market prices, largely negating the tax benefit?
Don't let the tax tail wag the dog, as the saying goes.
As a side note, I also question the accuracy of the statement in the CPA journal article that "selling is best deferred until after the child?s first semester of junior year, when a student?s financial status is no longer evaluated" -- I never saw anything on a FAFSA that stated a college junior didn't have to report assets or income.
-Mark Bole
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