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Mawhinney asks:

I recently saw a reference to the new, 5 yr. long, long term capital gain rate. Does anyone know what exactly this rate is and what the qualifications are to benefit from the rate?

The 5-year capital gains rate applies to assets bought on or after 1/1/01 and held for MORE than five years. For those in the 15% marginal tax bracket, gains on these assets will be taxed at a maximum rate of 8%. Those in a higher marginal bracket will be taxed at a maximum rate of 18%. Also, those in the 15% marginal bracket may apply the 5-year rate to assets sold on or after 1/1/01 as long as they were held for longer than 5 years at the time of the sale. Other taxpayers must purchase the asset after 1/1/01 and hold it for longer than 5 years. Note that the 5-year rate does not apply to sales of depreciable real estate or collectibles.

Regards..Pixy
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