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Subject:  Re: tax-free dividends? Date:  10/23/2012  12:18 AM
Author:  CABob Number:  116827 of 127753

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long-term category (holding period greater than 5 years) was back when tax law changes didn't sunset, and it was never repealed.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%.


So if I have some long term (5+ years) holdings with unrealized capital gains it might be to my advantage to hold until next year to sell?

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