I give up ...

[hexeliebe]

What is the name of your state? Tennessee

Just got through with a marathon meeting last night with my financial advosors on how to invest the last little bit of the proceeds of the latest land sale and here is what I came away with.

In March of 2003 Congress passed Bush's tax cuts. In the bill were provisions to change the 15% longterm capital gains tax for the lower two income brackets (up to about $34,000 on adjusted Gross income) to 5%.

I spent most of the night, two pair of glasses and a six-pack of Mountain Dew trying to find the specific reference but to no avail. And since my accountant, (Bubba and Bubba cpa) keeps telling me I will have to pay 15% on the 1.3 mil I'd like to either tell him o.k. write the check or "Whoa bubba, here's the new tax code!"

Just for those of you who doubt me, I do have an adjusted gross income of less than $30,000

So, can anyone point me in the right direction without getting Republican cooties?

 

[HomeGuru]

What is the name of your state? Tennessee

Just got through with a marathon meeting last night with my financial advosors on how to invest the last little bit of the proceeds of the latest land sale and here is what I came away with.

In March of 2003 Congress passed Bush's tax cuts. In the bill were provisions to change the 15% longterm capital gains tax for the lower two income brackets (up to about $34,000 on adjusted Gross income) to 5%.

I spent most of the night, two pair of glasses and a six-pack of Mountain Dew trying to find the specific reference but to no avail. And since my accountant, (Bubba and Bubba cpa) keeps telling me I will have to pay 15% on the 1.3 mil I'd like to either tell him o.k. write the check or "Whoa bubba, here's the new tax code!"

Just for those of you who doubt me, I do have an adjusted gross income of less than $30,000

So, can anyone point me in the right direction without getting Republican cooties?

**A: and where is your tax attorney?

 

[hexeliebe]

In Philadelphia for the next three weeks.

Hell, at least he could have told me Aruba or Belize. That I could have believed. But Philly? Who the hell wants to go to Philly for any reason?

 

[HomeGuru]

In Philadelphia for the next three weeks.

Hell, at least he could have told me Aruba or Belize. That I could have believed. But Philly? Who the hell wants to go to Philly for any reason?

**A: for the cheese steak?

 

[hexeliebe]

I guess so, it sure as hell ain't for the Eagles

 

[Snipes5]

Sorry I can't cite the CFR for you. However, if you look at the Schedule D new for 2003, it will explain in great detail, taking I believe 65 lines to do so, exactly how you'll be taxed at the lower capital gains rates.

There really is a new 5% Cap Gains Rate. I promise.

Snipes

 

[peeowed]

you should mention the "Jobs and Growth Tax Relief Reconciliation Act of 2003" to your accountant. i can't find a specific code section for you yet, but the information you want is discussed in there. it does state however that the capital gains rate cut is not across the board. you're specific situation should be researched fully to see if it indeed qualifies for the 5% rate. good luck~!

 

[abezon]

JGTRRA, the 2003 tax 'relief' package changed the capital gains tax structure. For long term gains, you are taxed at 5% if you are in the 10% or 15% bracket. Once your taxable income goes into the 25% bracet, you are taxed at 15%. The profits from the sale of the land will probably push you into the 25% bracket, so some of the profits will be taxed at 15% & some at 5%.

Here's a summary without IRC cites: http://www.douglasscapital.com/Flyers2/Summary of 03 JGTRRA.pdf

You can find the actual text & another summary here: http://www.grantthornton.com/downloads/June03regulatory_81831.pdf

 

[hexeliebe]

Thanks abe, I guess I need to fire my tax attorney. I pay him too much to be leaving me when I need him.