Saturday, December 26, 2009

Capital Gains Relief - 2010 May Be The End

For the last several years we've enjoyed lowered tax rates for long term capital gains. The current rates, through 2010, are 0% (yes - zero) and 15%, depending on your adjusted gross income. Starting in 2011, unless Congress extends these rates, they go to 10% and 20%. The lower capital gains rates apply to those in the lowest federal income tax brackets, with the higher rates for all others.

Confusing enough? Well, you can go to the TurboTax website for a summary of this and other tax changes for the next several years. I expect that the current activity in Washington will alter a lot of future tax considerations.

The REALLY good news is the capital gains exclusion, of up to $500,000 for a couple, on the sale of your primary home.

No comments: