Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Sr K who wrote (137215)	7/29/2008 1:36:38 PM
From: Tommaso	Read Replies (1) \| Respond to of 306849

Without researching this thoroughly, I do find that there are extraordinary advantages currently in effect for long term capital gains. I did the simple experiment of taking my 2007 TurboTax and reducing the "income" to put it below the limits mentioned. I then added back in a hypothetical long term gain of $120,000. The net increase in federal tax on the $120,000 was $9,220 making a tax rate of 7.68%. On a $60,000 gain, the tax rate was about 3.25%. So currently a couple reporting about $60,000 income can enjoy an additional $60,000 in long term gains and only pay an additional $1,954 in federal income taxes. I think it's something like this that JQP and Moneypenny are referring to. A 3.25% tax rate isn't "nothing" but it's close to it. To do this experiment, I had to eliminate all pension and Social Security income for both my wife and me from the experimental tax return. In actuality, it is not possible to do this. Still, some of us have clearly not been taking advantage of a very good opportunity.