Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.