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Author: jaloha Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: capital gains Date: 1/28/1999 3:28 PM
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Last year after new tax laws, I sold a piece of property under the new capital gains rules. Because my adjusted gross income was in the 15% bracket, I was assuming the capital gains portion would be taxed on it's own at 10% and added to the tax I owed on my regular income. But, the capital gain was placed on the 1040form on line 13--capital gain or loss-- and added onto my salary thus putting my new adjusted gross income way above the 15% tax bracket. That does not seem likeanyone could ever take advantage of selling a capital gains asset and taking advantage of the new 10% rule for 15% bracket. Bottom line was that I paid much more tax than I was anticipating. Is this the way you understand that the tax is computed? Once it goes onto line 13, basically it becomes viewed in the regular income designation. Thank you for your input
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