Zero Capital Gains Rate in 2008 Requires Careful Planning |
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One of the greatest benefits of the tax code is the special tax rates that currently apply to gain recognized from the sale of capital assets held for more than a year (long-term). The special tax rates apply to virtually all capital assets including land, improved real estate, your home, and business assets in excess of the accumulated depreciation previously deducted. Beginning this year, 2008, these special rates, which apply to net long-term capital gains (LTCG)(1) and qualified dividends drop to zero percent to the extent that your regular tax rate is less than 25% and 15% for all other capital gains. These rates, which apply only to non-corporate taxpayers, also apply for the alternative minimum tax and are available through 2010 barring any future tax law change.
Reap the Benefits of the 2008 Tax Law Changes |
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It is rather difficult to stay on top of your taxes, considering all of the changes going into effect this year - and with Congress working on more provisions. To simplify it all, here is a rundown of most changes that will affect individuals and small businesses in 2008.
Big Business Write-Offs Available In 2008 |
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Section 179 of the tax code allows taxpayers to elect to treat any portion of the cost of qualified business property as an expense deduction for the tax year in which the Section 179 property is placed in service - instead of having to capitalize the expense and recover the cost over several years.
IRS Announces Stimulus Rebate Schedule |
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The IRS has announced the Stimulus Rebate payment schedule for tax returns filed by April 15. Taxpayers who utilized direct deposit on their 2007 tax return will be first to receive the rebates.
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