Sell stock or property at a gain and pay little or no federal tax!

admin — Wed, 23 Jun 2010 01:47:55 +0000

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Here is something to think about. Do you have a building, piece of land, stock or other capital investments that has increased in value?

If you are in the 25% bracket or higher, the tax rate on long term capital gains will be only 15% in 2010. If you wait until 2011 to sell, the rate is scheduled to be 18% or 20% depending on your holding period.

If you are in the 15% tax bracket or lower, 2010 is your last chance to sell assets held long term a a gain and pay no federal tax. State taxes may apply, however.

WHAT TAX BRACKET ARE YOU IN?

If your income including the gain is under $43,350 (single), $86,700 ( married-joint), or even higher if you can itemize or are over 65, you are in the 15% or lower tax bracket and a candidate for a free sale.

A little tax planning could save you a lot of tax.

Give us a call to review your situation. We may never have this opportunity again in our lifetime.

Let us know what you thought of this article.

Here are some sites that talk about this opportunity.

Long Term Capital Gains Tax Rates Increase in 2011 (bargaineering.com)
Relief at lower-than-expected rise in capital gains tax (independent.co.uk)

2009 Year End Tax Tips- Capital Gains and Losses

admin — Tue, 15 Dec 2009 03:37:54 +0000

Capital Gains and Losses

For tax purposes, capital gains and losses are used to offset each other. However, any excess capital loss can also offset up to $3,000 of high-taxed ordinary income in 2009. The remainder is carried over to next year. If a gain qualifies as long-term capital gain (i.e., you have owned the asset for more than a year), the maximum tax rate on the gain is normally 15% (5% for low-income taxpayers).

Year-end strategy: When it makes economic sense, “time” capital gains and losses. For example, if you have already realized capital gains in 2009, you might realize capital losses at year-end to absorb those gains. Similarly, if you have realized capital losses in 2009, gains realized at year-end can offset those losses. For taxpayers in the regular 10% or 15% tax brackets, the maximum tax rate for long-term capital gains of 5% is reduced to 0%. Even taxpayers in higher tax brackets may benefit from the 0% rate on a portion of their long-term capital gain.

Tip: Depending on your situation, you might have children in low tax brackets sell securities to realize long-term capital gain in 2009. This tax break is scheduled to expire after 2010.

Let me know if you will be using this strategy this year.

SaveMoreTaxes.com » Capital gain

Sell stock or property at a gain and pay little or no federal tax!

2009 Year End Tax Tips- Capital Gains and Losses