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2010 is last year of the 0% long term capital gains tax rate for people in the 15% or less federal tax bracket. If you qualify you might want to sell and repurchase stocks with long term gains to establish a higher cost basis.

Note;

Wash sale rules do not apply for gains.

You may still have to pay state taxes.

You can only do for a limited amount of capital gains, just enough to get you up to the top of the 15% tax bracket.

If you have any capital losses carried forward from prior years, you have to use these first to offset the gains.

Greg
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2010 is last year of the 0% long term capital gains tax rate for people in the 15% or less federal tax bracket. If you qualify you might want to sell and repurchase stocks with long term gains to establish a higher cost basis.



i just discovered this ... starting to play with TurboTax last week..

is it Certain that it will remain for 2010?

not part of "Bush" expiring tax cuts??



=
.... accidentally had a lot of Gain .. using the low tax to convert some IRA to Roth
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My understanding is that it will end at the end of 2010 which is just a few weeks away. It would be good to research this but I have not heard any talk of extending it.


Greg
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is it Certain that it will remain for 2010?

Reasonably certain at this point. Congress generally doesn't like to make their tax increased too retroactive.

not part of "Bush" expiring tax cuts??

It most definitely IS part of the expiring tax cuts. Those tax cuts expire at the end of this year.

--Peter
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not part of "Bush" expiring tax cuts??

It most definitely IS part of the expiring tax cuts. Those tax cuts expire at the end of this year.


thanks ..Peter and Greg


i was up late last night trying to figure this out , so my brain a bit muddled..


part of the expiring 'tax cuts' ,But the hoo-hah in Congress is about what happens in 2011 et seq

SOMEhow i was thinking they were talking about 2010 --which would be too much nightmare even for our Congress .. not knowing 2010 rules until early 2011


(>:
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Looks like the current rates will continue. Not certain yet whether the 0% for those in the 15% tax bracket will continue. However, even if it does not, the previous rate under Bush was only 5% for those in the 15% bracket.
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