Wait till 2008-2010 to cash in. Could you do it?
Quote:
Originally Posted by
dorrel
Originally Posted by DinarDarling
Taxmama here - TIPRA (Tax Increase Prevention and Reconciliation Act of 2005) was extended. The 5% rate drops to -0-% from 2008 to 2010. That applies to those in the lowest tax brackets 10% and 15%. Currently long term gains are taxed at 15% and short term goes up to 35%.
I'm in the lowest bracket now but if I exchange 1 Mil IQD @ 1;1 USD dosen't my bracket change? How do I get the 5% rate?
Thanks in advance DD
Who if any would hold off on cashing in 2007 if it rv'd tomorrow? Just to keep you in the lowest tax bracket so you can get -0-% LTCG tax in 2008.
Maybe even keep your job or take a lower paying job,to stay poor in the lowest taxbracket till 2010 and let the exchange rate get stronger before cashing in. Anybody have the Will power? It could save millions in taxes.
You could quit your job and spend the rest of 2007 researching investments, taxes, and pay your self up to the tax bracket limit. You would then know if your gonna cash in in 2008 or take the job at Jack in the box till you cash out in 2010.