As I understand, the capital gains rate for 2008 will be 0% where it used to be 5%. Does it then jump to 15%? How is everyone doing planning for their clients? I have several clients with cap gains sales and I would like to give a ballpark figure on taxes. Any suggestions?
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No announcement yet.
New capital gains rate
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Governed by general rate
JenMo, appears this 0% rate is effective so long as the taxpayer's incremental rate stays at 15% or below.
I lost some significant tax planning opportunities because I believed the 0% rates was a colossal government mistake and would not survive in 2008, especially when they were looking for revenue to replace the AMT rescission.
But here it is, 2008 and the break is still here, and schedule to remain until 2010.
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Nope
Those in the 25% bracket, go straight to 15%...As far as my clients go, there are few that will qualify for the entire benefit of the 0% rate...Remember that the inclusion of the net gain from Cap Gains goes into the income before the rates are applied, bumping many of my clients to the 15% rate, with a small (maybe) amount going at 0%...
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