Short Term Vs. Long Term Vs. Trusts?
What is the difference in taxation rates?
Someone just posted that a short-term capital gain is when a property is held for less than a year. Are there more taxes on a short term than a long term? That woud seem to be the case.
What about using trusts and assigning beneficial interest to avoid the gains?
Gracias.
Quote:Someone just posted that a short-term capital gain is when a property is held for less than a year. Are there more taxes on a short term than a long term? That woud seem to be the case.Short term capital gains tax rate is the same as your ordinary income tax rate. The maximum long term capital gains tax rate is 15% through December 31, 2008, after which the rate will increase to 20% under the current law.
Quote:What about using trusts and assigning beneficial interest to avoid the gains?A living trust (revocable trust) does not have a separate tax identity, but it does not avoid taxes. Instead, all income from the trust passes through to the grantor and is reported on the grantor's personal tax return.