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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**NOTE: The information contained at this site is for educational purposes only and is not intended for any particular person or circumstance. A competent tax professional should always be consulted before utilizing any of the information contained at this site.**