Taxes (TAX)

[ypsiCPA]

Capital Gains Tax Rates

The reduced 15% tax rate on eligible dividends and capital gains, previously scheduled to expire in 2008, was extended through 2010 as a result of the Tax Reconciliation Act signed into law by President George W. Bush on May 17, 2006. As a result:

* In 2008, 2009, and 2010, the tax rate on eligible dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets.

* After 2010, dividends will be taxed at the taxpayer's ordinary income tax rate, regardless of his or her tax bracket.

* After 2010, the long-term capital gains tax rate will be 20% (10% for taxpayers in the 15% tax bracket).

* After 2010, the qualified five-year 18% capital gains rate (8% for taxpayers in the 15% tax bracket) will be reinstated.

http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States