As the super committee is working on reducing the deficit these days, the Bush tax cut is once again in focus. This reminds me that the current capital gain tax rate will expire by the end of 2012, with or without changes by the committee.
Bush's tax cut was extended during Barack Obama's presidency for two years. As part of Bush's tax cut, for taxpayers in the 15% income tax bracket and below, the 5% maximum tax rate on qualified dividends and net capital gain was reduced to 0 (zero) % in 2008.
Similarly, the maximum tax rate on qualified dividends and net capital gain was changed to 15% from 20% since May 5, 2003 under Bush's tax cut.
Are you going to sell your capital gain property before the end of 2012 to avoid a higher tax?
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