Wow! 0% Cap Gain Tax Rate for 2008

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Wow! 0% Cap Gain Tax Rate for 2008 - repost

dutch121 08-09-2008, 9:57 PM | Post #2549181 | 3 Replies

Repost from 03-27-2008, 12:41 PM | Post #2502315 |

I wish this were publicized more. It is HUGE for retirees...0% TAX! Hard to get better than that!:

Just found out about this. Sell stock up to $65K and pay 0% capital gain tax in 2008. Jeez, I have a lot of stock with very low cost basis which I have dreaded selling because of the profit - guess this is time to unload (up to a point).

"From 2008 through 2010, the long-term capital gains rate for some investors will drop to zero...The zero-percent capital gains rate will be limited to individuals in the 10% and 15% tax brackets"

"Suppose, for example, that you're a married couple, that the income cutoff for the 15% tax bracket in 2008 is $65,000 and that all your income comes from capital gains. If your 2008 taxable income is $55,000, none of your gains would be taxed, says John Roth, a tax analyst for CCH. But if you sell enough investments to generate $70,000 in long-term gains, $5,000 of those gains would be taxed at 15%"

http://www.usatoday.com/money/perfi/taxes/2007-06-15-mym-capital-gains_N.htm

http://www.nysscpa.org/cpajournal/2006/1206/essentials/p40.htm

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Re: Wow! 0% Cap Gain Tax Rate for 2008 - repost

Limoman

08-27-2008, 9:58 AM | Post #2554529

Question?

Maybe my selling my Berk. B Stock ( owned since it went public at $1,500 share) and bought every yr hence till last Yr..? Might be wise to Sell it now?

It is in a Taxable Account

or just sell enough to max that $65k cap?

and keep the rest..

I have similar with Other stocks, like WAG, WAL, ABT, BAX ,BUD, stocks owning them for decades ( small amts. back then) but due to Spilt div's and gains have considerable CG's..But really hate to sell them, since have done So well and jsut paying taxes on teh Div's ...

with my Taxable Port of M.. Funds? I've been paying as I go each yr with Divs and CG's..

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Re: Wow! 0% Cap Gain Tax Rate for 2008 - repost

salty1 09-08-2008, 11:37 AM | Post #2559396

LIMO: I would wait till the end of the year and then take just enough gains to just stay in whatever bracket you want (0, 10, 15%).

My question for the board is: Is now (2008,9,10) a good time to be converting Regular IRA's to Roth IRA's ...taking advantage of the low tax rates? (The market being down also helps in this regard right now.) Has anyone done this who can describe their decision process and how they went about doing it?