Tax rate on Capital gains in 2008.

[anelmida]

What is the name of your state?What is the name of your state? Nevada

About the 5% Fed. tax rate on capital gains in 2008. Can someone explain this to me? Thanks.

[abezon]

Explain what?

[anelmida]

Originally Posted by abezon

Explain what?

Will capital gain be taxed at a maximum rate of 5% regardless of income?

[Snipes5]

No.

5% is the MINIMUM capital gains rate.

Capital gains are taxed at 5% or 15% depending on the underlying tax bracket, and SOME very particular types of capital gains are taxed at 25% which is in fact the maximum capital gains rate.

If you tell us what the gain is from, we can tell you whether or not it is subject to maximum rates or not.

You could have alleviated all this back and forth posting if you would have just given us all the details of your question/situation in the beginning.

Snipes

[abezon]

Collectibles are taxed at a max rate of 28%. By referring to 2008, are you asking about the sunset provision in the law? Sunset provisions are part of most tax laws & give the time when the law expires & everyone reverts back to the old rules. The tax code is usually modified before the sunset deadline, so this usually doesn't come into play.