THIS TID-BIT COULD SAVE YOU PLENTY!
As of Jan 1, 2008 and through 2010, capital gains realized by those (age
19 and older or, if a full time student and a dependent, then 24 and older)
in the 10 and 15% tax brackets can sell appreciated assets and pay
NO TAX !!!!!
TWO WAYS TO MAKE AN EXPENSIVE MISTAKE:
- Sell such assets in 2007 instead of waiting for the tax break in 2008.
- Not understanding how capital gains affect your tax bracket.
BOTTOM LINE:
Consider all your non-retirement investments that have gone up in value.
If you want to sell, wait until 2008 (if you believe the price won’t go
down more than 15% between now and then). If you want to hold, consider
selling and buying right back. Get that much gain tax free! Whatever you
do:
Seek competent tax advice.
Co-authored by Sally Jo Button and Carolyn Keene, E.A.
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