Archive for the ‘Capital gains’ Category

Year End Tax Planning Ideas

by P. Lewis Robinson
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Nov
6

Year End Tax Planning Ideas


The midterm elections have changed the Congressional landscape, with Republicans winning control of the House of Representatives and picking up seats in the Senate. Even so, it’s still to early to know exactly how this will affect open tax issues for 2010 and 2011.

Specifically, when the “lame-duck” Congress returns this month, it must decide whether to “patch” the alternative minimum tax (AMT) for 2010 (increase exemption amounts, and allow personal credits to offset the AMT), as it has done in past years. It also must decide whether to retroactively extend a number of tax provisions that expired at the end of 2009. These include, for example, the research credit for businesses, the election to take an itemized deduction for State and local general sales taxes in lieu of the itemized deduction permitted for State and local income taxes, and the additional standard deduction for State and local real property taxes. (more…)

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10 Facts About Capital Gains and Losses

by P. Lewis Robinson
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Feb
22

Have you heard of capital gains and losses? If not, you may want to read up on them because they might have an impact on your tax return. The IRS wants you to know these ten facts about gains and losses and how they could affect your tax situation.

  1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. (more…)
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8/4/08 – Capital Gains Tax

by P. Lewis Robinson
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Dec
10

CAPITAL GAINS TAX:

 

Capital gains tax rates are determined by the type of investment asset and the holding period.

In additional to the federal capital gains tax rates, your capital gains will also be subject to state income taxes. Most states do not have separate capital gains tax rates. Instead, most state will tax your capital gains as ordinary income subject to the state income taxes rates.

Starting with 2008, there’s a new zero percent tax rate on long-term capital gains. The zero percent rate applies to individuals who are in the 10% and 15% marginal tax brackets. The zero percent rate is scheduled to expire at the end of 2010, when capital gains rates will increase to at least 15%.

Capital Gains Tax Rates

Type of Capital Asset

Holding Period

Tax Rate

Short-term capital gains (STCG)

One year or less

Ordinary income tax rates up to 35%

Long-term capital gains (LTCG)

More than one year

5% for taxpayers in the 10% and 15% tax brackets (zero percent starting in 2008)

 

 

15% for taxpayers in the 25%, 28%, 33%, and 35% tax brackets

Collectibles

One year or less

STCG tax rates up to 35%

Collectibles

More than one year

28%

Small Business Stock Gains (Section 1202)

More than five years

28% on the gain not excluded

Real Estate Main Home

One year or less

STCG

 

More than one year

LTCG taxed at 5% or 15% after any exclusion amount

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