AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/24/2008 Subject: 2008 Capital Gains
Question My father-in-law told me that in 2008, there will be no capital gains tax. As I read about it, it looks to be something with the 2003 tax changes. Does that mean only stocks/mutual funds bought after 2003? My wife has about 15,000 is USB stock we may be looking to unload. We make a $60K a year taxable income and have two children. Would this make good financial sense? Thanks for the help.
Answer Like most father-in-law advice, it has the ring of truth to it but it is not totally accurate. The zero capital gain rate only applies to taxpayers in the 10% and 15% brackets. If your income pushes you into the next higher bracket in 2008, you will pay LTCG tax at the 15% rate.
It applies to any LTC gain, regardless of when items were purchased - except that must have been held for a year or more. I don't have enough information to tell you if it makes good sense for you or not.
