Sorry people, but it looks like the party is just about over. That is, if you enjoyed the low capital gains tax rates extended by George W. Bush and set to expire and the end of this year (2010).
Check-out the substantial changes it makes to the higher end of the spectrum (those in highest tax-brackets). Actually, that’s kind-of to be expected. Hey, how are we going to pay for the war(s) and all these bank bail-outs anyways?
On the other hand, if you’re flat-out broke, now you know where future benefits will be coming from (in part).
On the bright-side, perhaps this may further stimulate Real Estate activity amongst investors, looking to lock-in more profits and pay less homage to Uncle Sam. Can’t say I blame them!
Here’s a handy chart for reference:
| 2003 – 2010 | 2011 - | ||||||
|---|---|---|---|---|---|---|---|
| 2003 – 2007 | 2008 – 2010 | 2011 - | |||||
| Ordinary Income Tax Rate | Short-term Capital Gains
Tax Rate |
Long-term Capital Gains
Tax Rate |
Short-term Capital Gains
Tax Rate |
Long-term Capital Gains
Tax Rate |
Ordinary Income Tax Rate | Short-term Capital Gains
Tax Rate |
Long-term Capital Gains
Tax Rate |
| 10% | 10% | 5% | 10% | 0% | 15% | 15% | 10% |
| 15% | 15% | 5% | 15% | 0% | |||
| 25% | 25% | 15% | 25% | 15% | 28% | 28% | 20% |
| 28% | 28% | 15% | 28% | 15% | 31% | 31% | 20% |
| 33% | 33% | 15% | 33% | 15% | 36% | 36% | 20% |
| 35% | 35% | 15% | 35% | 15% | 39.6% | 39.6% | 20% |
Thank you Wikipedia
