Real Estate CPA Tax Expert

The Latest Tax Law
Changes & Issues

Capital Gains Tax Strategy Analyzer Software

Business & Tax Entity
Selection Guide
Making the Right Choice

Worker, Homeownership, and Business Assistance Act of 2009

Chances of being audited

American Recovery &
Reinvestment Act of 2009

   Part I - Businesses
   Part II
   Part III

   Part IV - Individuals
   Part V - Health Care

   Part VI - Energy Credits

Debt Forgiveness Rules
New Vehicle Tax Deduction
FY 2010 Budget Proposal
Net Operating Loss Planning
 Stabilization Tax Act
2008 Stabilization Tax Act
2008 Tax Act Key Changes
2009 Business Mileage Rate
IRA Tax Strategies
IRA/Roth Rollover
HSA 2009 Rates
Abandoned Securities
Partnership Fringe Benefits
2008 Individual Tax Changes
Zero Capital Gain Tax in 2008
Recent Tax Developments 2008
2008 Non-Business Tax Changes
2008 Recent Tax Developments
2008 Tax Stimulus Package
2008 Tax Stimulus Update
2008 Tax Stimulus - More Info
2007 Tax Law Changes
2007 Mortgage Forgiveness Act
2007 Technical Corrections Act
Prepaid Mortgage Ins Premiums
LLC and Employment Taxes
Spousal Partnership Rules
S Corporation Name Change
Payroll Taxes Recurring Item
HSA Comparability

Tax Planning for the 2010
Zero % Capital Gain Rate Expiration

Capital Gain Tax Strategy
Analyzer Software

Since 2008, long-term capital gains have been taxed at either 0% or 15% depending on your ordinary income tax bracket. At the end of 2010, these low rates are set to expire, and will revert back to the old rates of 20%, or 10% (if you are only in the 15% ordinary income tax bracket.)

Essentially, your capital gain tax rate is set to increase by no less that 33.33% next year!

The expiration is a sunset provision, so Congress needs to do nothing. If Congress were to do something, rest assured the odds are the rates will go up even further.

I’ve been doing strategic tax planning with all my clients to take advantage of the zero tax bracket while we still have it. We brainstorm on timing of stock or real estate sales as well as other ways to generate capital gains such as related-party transactions (remember gains from related-party transactions have never been limited… only losses!)

As a simple example, I have a client who sold a publically traded stock in January for a capital gain of $75,000. His federal income tax bill is ZERO! If he had waited until next year, he would have paid more than $7,500.

Don’t have that kind of gain? Accelerating even a modest amount can yield savings. As an example, capital gain of only $3,000 would save approximately $450.

Planning is critical, and part of planning is first determining how much capital gain you can generate without paying income tax.

That’s where our 2009/2010 Capital Gain Tax Strategy Analyzer software can help you estimate how much of the “zero” tax bracket you have based on your personal tax situation. Simply enter your estimated income and deductions, and the software computes the capital gain “opportunity”.


Zero Percent Capital Gain Analyzer Software