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Zero Percent Capital Gains Tax Rate in 2008 to 2010 for Certain Taxpayers

The capital gains/qualified dividend tax rate drops to zero for those taxpayers who are in the 10% or 15% tax bracket in any year from 2008 to 2010. While many of our clients will not qualify for the 0% capital gains/qualified dividend rate from 2008 to 2010, they might have parents, children or siblings who can. In these cases, a well-placed gift of appreciated stock might save up to 15% in capital gains tax. If you have a parent, child or sibling who is in this bracket, a gift of appreciated stock held over one year to such a person might be a better idea than gifting money. The donee of the stock inherits the donor's cost and holding period. Such a recipient would then sell the stock at a gain but would then be subject to a 0% federal tax rate. Children under age 24 may be taxed at their parents' tax rate. Read article on the new rules applicable to children.

For more information, contact Mike Calahan at 312-980-2996 or your Blackman Kallick representative.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.