Tax Savings!
Hello Friends!
Do you have investments that have appreciated significantly since the lowest of lows in March of 2009? Did you buy these investments in April of 2009 or earlier and are worried about the capital gains tax implications when you sell them? And do you, like me, make little earned income and therefore fall under the 10% or 15% income tax bracket?
Well my friend, I have good news for you. for 2008-2010, there are no long-term capital gains taxes for those of us quasi-poor folk trying our hand at this whole investing thing!
Here is the full article outlining the capital-gains tax cuts.
Basically, it boils down to this. Capital gains taxes (taxes on appreciated value of investments) was cut for the 2008-2010 tax years across the board with the biggest savings for low-income investors. The lowest of these is the long-term capital gains tax ("long-term" meaning held for a year or more) which is nonexistent for people in the 10-15% tax brackets. This means you can sell your long-term investments and pay NO TAXES on the gains! 2010 is the last year for this and who knows where taxes will go afterwards? (And at 0%, there's only one way for taxes to go!)
So how can you benefit? Perhaps you bought some Citi or Ford stock when it was on fire sale last year. Perhaps it has since doubled or tripled or even more in value. Perhaps you want to reap the rewards from it. Or perhaps, like me, you'd rather reset your position in your holdings to avoid extra taxes. Well 2010 is the year to sell, clean out your positions, post capital gains at a 0% tax rate and then do what you want with the money!
And there's nothing wrong about it; it's all written into the tax code. And you don't have to do it right now, anytime in 2010 will suffice. Just make sure you're in the 10%-15% tax bracket and no higher. Also make sure the assets you sell have been held for at least a year or more or else they will default to your regular tax rate. And that would be disastrous. Well, not really, but it could be! So take advantage today! (or tomorrow, or whenever. Just don't forget when New Years rolls around...)
Do you have investments that have appreciated significantly since the lowest of lows in March of 2009? Did you buy these investments in April of 2009 or earlier and are worried about the capital gains tax implications when you sell them? And do you, like me, make little earned income and therefore fall under the 10% or 15% income tax bracket?
Well my friend, I have good news for you. for 2008-2010, there are no long-term capital gains taxes for those of us quasi-poor folk trying our hand at this whole investing thing!
Here is the full article outlining the capital-gains tax cuts.
Basically, it boils down to this. Capital gains taxes (taxes on appreciated value of investments) was cut for the 2008-2010 tax years across the board with the biggest savings for low-income investors. The lowest of these is the long-term capital gains tax ("long-term" meaning held for a year or more) which is nonexistent for people in the 10-15% tax brackets. This means you can sell your long-term investments and pay NO TAXES on the gains! 2010 is the last year for this and who knows where taxes will go afterwards? (And at 0%, there's only one way for taxes to go!)
So how can you benefit? Perhaps you bought some Citi or Ford stock when it was on fire sale last year. Perhaps it has since doubled or tripled or even more in value. Perhaps you want to reap the rewards from it. Or perhaps, like me, you'd rather reset your position in your holdings to avoid extra taxes. Well 2010 is the year to sell, clean out your positions, post capital gains at a 0% tax rate and then do what you want with the money!
And there's nothing wrong about it; it's all written into the tax code. And you don't have to do it right now, anytime in 2010 will suffice. Just make sure you're in the 10%-15% tax bracket and no higher. Also make sure the assets you sell have been held for at least a year or more or else they will default to your regular tax rate. And that would be disastrous. Well, not really, but it could be! So take advantage today! (or tomorrow, or whenever. Just don't forget when New Years rolls around...)