House cap. gains cut to cap at 15%?

USAtrader · May 19, 2003

Noticed in the table of the various cuts being fought between house and senate versions, from the NYTimes on friday, that the house is looking for capital gains to cap out at 15%.

Were they just reffering to long-term rates?

(My eyes became watery imagining 15% cap on short-term rates!)

gnome · May 19, 2003

Quote from USAtrader:

Noticed in the table of the various cuts being fought between house and senate versions, from the NYTimes on friday, that the house is looking for capital gains to cap out at 15%.

Were they just reffering to long-term rates?

(My eyes became watery imagining 15% cap on short-term rates!)

Yeah, right. Dream on.

USAtrader · May 19, 2003

THat's what I'm saying. I was dreaming.

catmango · May 22, 2003

I'm pretty sure that they will still treat short term gains as ordinary income.

Sucks for us.

Jayford · May 23, 2003

It did pass the house, and will pass senate today. bush said he will sign.

Cap gains will now be long term 15%, short term, regular rate.

gms · May 23, 2003

Will the new rate be retroactive to 1/1/2003?

Jayford · May 23, 2003

Quote from GreenTraderTax:

All the press keeps mentioning the new 15% top tax rate on "capital gains" and dividends in the new tax act.

They should be more clear and mention that this new low rate only applies to "long-term capital gains."

Short term capital gains, when you hold a security for less then 12-months, are taxed at ordinary tax rates, and the top ordinary rate is cut to 35%.

Robert Green, CPA
GreenTraderTax.com

Yes, but for futures traders, 60% still is long term. So we get a 15% rate on 60% of gains compared to a 20% rate before.

praetorian2 · May 23, 2003

What can I say.... Glad I voted for bush. The job of any elected official is to reduce taxes and then get out of my face. Bush is doing just that.

For us traders, this means that we should start looking much longer term. You think gold is higher in a year, buy some nem and pay 15% on it. You think this new tax bill will make the tax code many times harder to understand, buy some HRB and hold a year. You like beer, go buy some BUD and hold a year. Win-Win.

Now that this is settled, lets get back to the important issues, like finding some more terrorists.

corvus · May 23, 2003

Quote from praetorian2:

You think gold is higher in a year, buy some nem and pay 15% on it. You think this new tax bill will make the tax code many times harder to understand, buy some HRB and hold a year. You like beer, go buy some BUD and hold a year. Win-Win.

But don't hold two years...

MYDemaray · May 23, 2003

Robert,

If such a bill passed, do you think the new 15% rate would apply to the 60% portion of Section 1256 contracts?

Regards,

Michael