| BUSINESSWEEK ONLINE : JANUARY 29, 2001 ISSUE | |||||
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| BUSINESSWEEK INVESTOR
Super Break? New, lower capital-gains tax rates are kicking in for assets owned five years or longer--but deciding whether to take advantage of these new rates is tricky. IT'S A GOOD IDEA IF... -- You're Giving Funds to Teenagers: A child 14 or older in the 15% tax bracket can claim a lower gains rate--8% vs. your 20% rate--on assets you've already owned five years. -- You Have Stocks with Small Long-Term Gains: You can pay tax on gains through Jan. 2, then start the clock running on a new holding period to get the 18% five-year rate in 2006. -- You Plan to Hold Shares a Long Time: Don't restart the clock on any property you plan to sell before 2006--you'll pay tax now, with no benefit later. -- You Own a Business That's About to Take Off: You'll have to hire an appraiser to set the company's value as of Jan. 1, then can start a new holding period to claim the five-year rate. IT'S A BAD IDEA IF... -- You Have a Loss on Shares: If you restart the clock on a losing position, you can't claim the loss to reduce your taxes. -- You Plan to Bequeath or Donate Property: Don't pay tax now on assets targeted for your estate or for charity--capital gains on such assets wouldn't be taxed anyway. Data: BusinessWeek _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Tax Relief May Come to Those Who Wait CHART: Making Low Tax Rates Pay TABLE: Super Break? INTERACT E-Mail to Business Week Online |
