I have been doing a number of distressed disposition analyses for taxpayers who are upside down on their mortgages. I recently met with a family who has several rental properties in this situation. I mentioned to them that this year and for the next 3 years the capital gains rate goes to zero for people in the 10 - 15% bracket, and for those above it is 5%.
They spoke with their regular accountant and their attorney. Neither of these people had heard of the change to the capital gains rate. I heard about it several years ago when it was first passed but forgot until reminded at a seminar last week.
Could somebody give me the law and year it was passed that made this change?
I am warning them that it could be changed again depending on the election results so don't count on any more lower rate after 2008.
Linda Dorfmont E.A., CFP, CSA