On 11/3 and 11/4, there appeared an article that capital gains on securities will not be taxable for the?

Question

years 2008 - 2010?

Answer 1

I'm single. I make about $50,000 in wages and let's say I have $10,000 in long term capital gains. If I take the standard deduction and one exemption, my taxable income on the salary alone will put me in the 25% tax bracket and I will pay 15% on the capital gains.

If I make $35,000 in wages, the wage income will put me at the low end of the 15% tax bracket and adding in the capital gains will push me into the next tax bracket, so some of it will be taxed at 0% and some of it at 15%.

If I was a dependent child, the 0% rate won't necessarily apply. Congress noticed many parents were transferring appreciated assets to their children hoping to cash in on the lower tax rate and closed that loophole.

Answer 2

This is going to trip up many people. If you are in a low enough bracket to qualify for the 0% LTCG rate on some gains, it would make sense to sell and recognize gains just up to the point at which you would go into the 15% LTGC rate. You could buy the securities back immediately, with a new increased basis, unless the Feds put in some new restriction I have not heard about.

Answer 3

...if your total income means you'd pay a 5% capital gains rate. See http://www.usatoday.com/money/perfi/taxes/2007-06-15-mym-capital-gains_N.htm