LT Capital Gains Rates during 2011 and 2012?

[OtisMozzetti]

The tax law signed on Dec. 17 extended the capital gains rates from the 2003 tax law into 2011 and 2012. That means that the maximum rate for regular tax is 15%. Does it mean that the rate for capital gains and qualified dividends that fall into the lower two tax brackets get the 0% rate, or would those rates be 10% and 15%?

EA in California

[dtlee]

Good question, I had assumed 0%, but never thought about it as deeply as you (my daughter already liquidated her mutual fund but we were holding off on selling her stock in case the law was extended)....I am glad you made me check.

In answer to your question, according to CCH here:

http://tax.cchgroup.com/downloads/files/pdfs/legislation/bush-taxcuts.pdf

the 0% rate has been extended (see page 2).

[OtisMozzetti]

Thank You

Good question, I had assumed 0%, but never thought about it as deeply as you (my daughter already liquidated her mutual fund but we were holding off on selling her stock in case the law was extended)....I am glad you made me check.

In answer to your question, according to CCH here:

http://tax.cchgroup.com/downloads/files/pdfs/legislation/bush-taxcuts.pdf

the 0% rate has been extended (see page 2).

Thank you very much Doug dtlee.

[jimmcg]

Good question, I had assumed 0%, but never thought about it as deeply as you (my daughter already liquidated her mutual fund but we were holding off on selling her stock in case the law was extended)....I am glad you made me check.

In answer to your question, according to CCH here:

http://tax.cchgroup.com/downloads/files/pdfs/legislation/bush-taxcuts.pdf

the 0% rate has been extended (see page 2).

Best summary format of the new legislation I have seen to date............CCH generally comes through quickly. They have the resources.

[OtisMozzetti]

no more additional standard deduction for real property tax

It was mentioned that the additional standard deduction (up to $500/up to $1000) for paying real estate property tax died insofar as 2010 tax returns, and died for future years.

[jimmcg]

It was mentioned that the additional standard deduction (up to $500/up to $1000) for paying real estate property tax died insofar as 2010 tax returns, and died for future years.

That is my understanding also. However I have not had time to read the detailed bill. Maybe someone else can tell us differently.

[OtisMozzetti]

That is my understanding also. However I have not had time to read the detailed bill. Maybe someone else can tell us differently.

It definitely says, in the CCH summary that was referred to, no more increased standard deduction for real property tax paid. I also looked at the text of HR4853, the bill that was signed into law. The text of the new law mostly says "the date in [previous tax law] is hereby changed to 'x years later'". My guess, only my guess, is that the increased standard deduction was created as part of a law that was passed near the end of 2007 or 2008, and that law was not extended.