Chart for December 21, 1997 Tax Prophet Column

Copyright 1997 Robert L. Sommers, all rights reserved.

Chart for December 21, 1997 Tax Prophet Column

TAXPAYERS IN THE 28% OR HIGHER TAX BRACKETS

Maximum

Rate

Qualifications

Holding Period

Effective Date

Taxpayer’s tax bracket (39.6% max.)

All assets sold by taxpayers in the 28% or higher bracket

Less than one year (short-term capital gains)

Sales before 5/7/97

28%

All assets

Between 12-18 months

Sales on or after 7/29/97

25%

Gain on prior real estate depreciation, including depreciation for a home-office after 5/6/97

More than 18 months

Sales on or after 7/29/97

20%

Asset sales (except collectibles)

More than 18 months

Sales on or after 7/29/97

20%

Asset sales (except collectibles)

More than 1 year

Sales from 5/7/97 through 7/28/97

18%

Assets sales (except collectibles)

More than 5 years

Purchases and sales after 12/31/2000

14%

Gain on Small Business Stock subject to 50% exclusion

More than 5 years

Sales on or after 7/29/97

 

TAXPAYERS IN THE 15% TAX BRACKET

 

15%

Gain on assets, including collectibles and prior real estate depreciation

More than 12 months but less than 18 months

Sales on or after 7/29/97

10%

Assets (except collectibles)

More than 18 months

Sales on or after 7/29/97

10%

Assets (except collectibles)

More than 1 year

Sales from 5/7/97 through 7/28/97

8%

Assets (except collectibles

More than 5 years

Sales on or after 1/1/2001

7.5%

Gain on Small Business Stock subject to the 50% exclusion

More than 5 years

Sales on or after 7/29/97

       



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