Wednesday, May 19, 2010

Increasing Capital Gains Rates? Sell Now or Sell Later--

A client pointed out that if the tax law does not change, long term capital gains taxes are likely to go UP after the first of next year.

That means that if you sell your long-held home this year, you may pay 15% in federal capital gains taxes (after your $250K or $500K exclusion, and after subtracting your ''basis'' from the sales price), while if you sell next year, you might pay 20% in federal capital gains taxes. (See this link for good information about this issue, and of course check with your accountant and legal advisor before making any decisions....). Depending on your circumstances, this could make a big difference in your taxes, or just a small difference.

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