NO Capital Gains Tax for Taxpayers in the 10% and 15% Tax Brackets

For tax year 2008, taxpayers who are in the 10% and 15% tax brackets will NOT be taxed on any capital gains. Therefore, the capital gains rate for these taxpayers is 0%.

The long-term capital gains rate remains at 15%* for taxpayers in all other tax brackets (25%, 28%, 33%, and 35%).

*The long-term capital gains from the sale of some assets, such as collectibles, remains at 28%. Also, unrecaptured Section 1250 gain remains unchanged at the maximum 25%.

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