The Maximum Long Term Capital Gain Tax Rate Is 15%?
Hi,
I read the following in one of the posts:
A) "... The maximum long term capital gain tax rate is 15% if your tax bracket is at least 25%. "
and in an article in Money Magazine it says:
B) "... The 25% Rate - Who's Eligible: Property owners and real estate investment trust (REIT) investors in the 25% income-tax bracket or higher who hold property for more than one year. "
So which is correct? A or B?
thanks, Pam
Which Money magazine issue are you referring to and what is the story title?
Perhaps there was a typo, it does happen. As of right now, the maximum long term capital gains tax rate is 15%. It will revert to 20% in 2009, barring Congressional intervention in the meantime.
here is the link:
http://www.smartmoney.com/tax/capital/index.cfm?story=capitalgains&nav=LeftN
thanks, Pam
Thanks for the link. I read the entire Money magazine article, to include the full context for the sentences you extracted.
The 25% tax rate discussion in the magazine article is referring specifically (and only) to depreciation recapture. No matter what your tax bracket, depreciation is recaptured at 25%.
[ Edited by NewKidinTown2 on Date 09/28/2004 ]