Re: cap gains rates?

[philmarti@aol.com (Phil Marti)]

In article <35b649ea.38071609@news.atl.mindspring.com
>, 
fake@atl.mindspring.com
(Dave) writes:

>1)  What are the capital gains rates for the different income
>brackets?  Please define what the numbers of the income brackets are.

The bracket boundaries vary by filing status.  For the 1998 income tax
brackets, see Form 1040 ES.  Short-term cap gains are taxed as ordinary 
income.
 Long-term cap gains are taxed at 10% if you're in the 15% bracket, otherwise
at 20%.

>2)  Am I correct in thinking that the new capital gains/losses are
>based on 18 months of holdings?  

The IRS reform legislation, expected to be signed this week, sets the 
long-term
holding period at 1 year, effective for sales after 12/31/97.

>3)   What do you do if you have a capital gains loss and no gain but
>other income (i.e. interest, short term, salary, etc.)?

$3,000 of a net capital loss can be deducted from other income.  The remainder
is carried forward to applied against future gains.

Phil Marti, EA
Washington, DC