Taxpayer is currently overseas in military earning combat pay, which is excluded from tax. In his spare time in Afghanistan, taxpayer has time to plan the potential sale of rental property here in the states. He should be in the 15% tax bracket in 2008 due to the exclusion of his combat pay. Realizing that we first have depreciation recapture, anybody see any problems with the zero capital gains rates in 08 for this taxpayer? Anything odd about having to add back combat pay for some modified adjusted gross income?
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Looks OK
Looks OK to me.
And it might be an especially good move given the current political climate. If the election goes the way many are predicting, tax rates are probably going up and favorable tax treatment of capital gains will likely be one of the earliest casualties."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith
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