Tax Free Cashing out of investments

[Howard]

A client faxed to me a document published a few months ago in an AARP magazine claiming that there will be a tax break from TY 2008 - 2010, whereby singles would pay no capital gain taxes up to $32,550 in taxable income (couples $65,100) on securities held more than one year. In other words, some people would not have to pay any taxes on the cashing out of their investments.

For the life of me, I have tried the IRS website, Pub 17 for TY 2008, Latest IRS changes for TY 2008, etc, etc and can find NO mention of this. Can anyone please shine some light on whether or not this is true and where I would research this matter?

Thanks,

Howard

[jainen]

>>I have tried the IRS website, Pub 17 for TY 2008, Latest IRS changes for TY 2008, etc, etc and can find NO mention of this.<<

See the first paragraph of Chapter 16 in Pub 17 at http://www.irs.gov/pub/irs-pdf/p17.pdf.

Also see the revised instructions to Line 44 of Form 1040 and the Schedule D Tax Worksheet at http://www.irs.gov/pub/irs-pdf/i1040.pdf