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Subject:  LTCG Rates for 2002 Date:  8/24/2001  7:32 PM
Author:  jailleres Number:  53551 of 127753

We may sell some vacant land at a gain of $160K this year(LTCG). I am considering postponing the payment until 2002 since this year our income is high.

Question #1: If our earned income next year is $15K (married filing jointly) and we include the LTCG of $160K, how will the LTCG rates apply? Will we get the 8% rate on part of it up to total income of $43850 (or whatever it is next year) and then 20% on the remainder?

Question #2: If I do take payment Jan 1, 2001, how much imputed interest will I have to show if the land sale actually happens on, say, Nov 1, 2001? Can I calculate it as 2 months at .5% per month (simple interest) on the total selling price?

Thanks in advance
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