The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: tax-free dividends? Date:  10/22/2012  8:16 PM
Author:  irasmilo Number:  116826 of 127545

The "Bush Tax Cuts" came along and temporarily (for 10+ years) replaced it. But guess what? That "super" long-term category (holding period greater than 5 years) was back when tax law changes didn't sunset, and it was never repealed. So, unless the law changes before then, that category is back as of 1/1/2013. Anyone who did that "deemed" sale back when will have satisfied the 5 year holding period and then some. I don't remember the rates, but IIRC it's a couple of percentage points lower than the ordinary LTCG rate.

Correct. The 5-year rates are 8% and 18%.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us