Message Font: Serif | Sans-Serif
No. of Recommendations: 3
I have heard and read a little about the possibility of cutting your capital gains tax to zero in 2008 but I would like to get more information. Is there a publication available? The article I read talks about the sale of stocks, mutual funds, and "other securities". Does this include investment real estate? I think we can get our taxable income down next year with some strategic planning and we would like to take advantage of this tax cut.

Don't get too excited. This is all part of the tax law changes from 2003 (JGTRRA?). However, the 0% LTCG rate only applies to that portion of your LTCG that would currently be taxed at 5%, not all of your LTCG. Additionally, with the rollback in the AMT standard deduction, you may find that a large LTCG exposes your regular income to AMT. Any good tax planning module in a 2006 tax prep package should give you an idea of what 2008 will bring, although I don't think the indexed amounts for 2008 have been released yet.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.