2008 Capital Gains Tax

[Ray in Ohio]

I remember (I think I do anyway) that there is something special with capital gains tax for assets sold in 2008. I don't remember specifics and I kinda don't have time right now to do a whole lot of research.

I am hoping someone can give me the basics in a nutshell.

Whats up?

Thanks!!!

[RitaB]

Hi, Ray. I think, in a nutshell, the LT rate of 5% drops to 0% for tax years 2008 - 2010. So, the gain (or part of the gain) that would have been taxed at 5% (under 2007 law) will not be taxed.

Of course, the mechanics and barbers will tell all our clients that there is no capital gains tax (at all!) for 2008. Our clients will run out and sell everything, short term, long term, you name it. They will not ask us first, then argue with us when they owe tax.

Here is an article I kinda skimmed that you might find helpful:

http://www.nysscpa.org/cpajournal/2006/120...entials/p40.htm

On another (kinda similar) note, I cannot believe the number of people who have brought in their stimulus letter for me to explain to them. If I wanted to see it, they would never mention it to me.