Off Topic: I have a question regarding the recent tax break on capital gains. My cousin just started working, and will probably fall in the lowest tax bracket since he will make less than $25,000 ($20,000) this year. Therefore, his tax bracket is 15%. He wants to sell his INTCW this year, because next year he will make a full year's $60,000 of income at his job. By the end of the year, he would have held the INTCW for more than 1.5 years so that is not a problem. His capital gain on INTCW will be $100,000. For the 15% tax bracket, the capital gains was lowered to 10%. My question is this: if he sells the entire INTCW, will his tax be 10% on the entire $100,000, or just 10% on the 1st $25,000, and then 20% on the remaining $75,000?
my accountant is on vacation in europe so i thought i'd pop this question on this thread.
thanks,
joey |
