Profit Taking to Become Less Expensive

The capital gains tax rate is scheduled to drop to zero percent in 2008, 2009 and 2010 for taxpayers in the 15% and 10% tax brackets, which could make selling appreciated securities especially appealing for low-bracket taxpayers. For 2007, single taxpayers are in the 15% bracket until taxable income exceeds $31,850. In 2008, inflation indexing will probably extend the 15% bracket to about $33,000. Married couples filing jointly will pay at a 15% rate on 2007 taxable income up to $63,700 and next year the 15% bracket will likely reach about $66,000.


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