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Got a couple stupid questions here.
I've looked around, and the answer should be obvious. Okay, maybe it is obvious, but it just sounds too good to be true, and I'm looking for somebody to tell me I'm right, or else where I'm wrong.
I am the custodian of an UTMA account (mutual fund) in the name of my #1 son, who is 16 and starts college in 2006. Said account was contributed to between 1993 and 2000, and right now is sitting on about $20K in capital gains. This mutual fund is not very volatile, but at some point, since the money is needed for college, it might as well be moved into money markets/CDs. Said son's other income for 2004, all dividends and interest, will be <2000. If the fund is liquidated, will the $20K cap gains really be taxed at only 5%? And does this 5% apply as long as the AGI is less than 28K?
Question #2 becomes (you probably can see it coming) how likely is it that the outcome of the election could change this rate for 2005? Realizing that nobody can make this decision for me, I'm kinda thinking that if this rate is really true, that if Bush loses, I might as well take the cap gain this year, since the money will be needed soon, and maybe this good deal won't last forever . . .

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