Capital gains rates: In the eye of the holder? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Capital gains rates: In the eye of the holder?

Get PDF file

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q Does the new tax law reduce the maximum tax rate for gains from sales of artwork? C.C., Scottsdale, Ariz.

A. No. A higher maximum federal income tax rate of 28% applies to long-term gains from the sale of collectibles like artwork (as opposed to the usual 15% maximum rate on long-term gains from sales of other capital assets (20% for single filers with income above $400,000 and joint filers with income above $450,000). The new tax law did not change the maximum 28% rate on collectibles gains.

Tip: As with sales of other assets, timing can be critical. Depending on your situation, you might move up sales into 2013 at year-end or postpone sales to defer taxable gains to 2014.

Leave a Comment

Previous post:

Next post: