Accepted Answer

Yes, this rule is still in effect. The 0% long term capital gains rate for those in the 15% or lower marginal tax brackets will apply through the end of 2010. The 15% marginal tax bracket is based on taxable income after deductions and exemptions. The taxable income amount that determines the 15% bracket is based on filing status. For example, the 15% ceiling for a single filer is when taxable income does not exceed $33,950 and for a married couple filing jointly the ceiling is $67,900.

 

In my opinion (and articles written by tax experts), no changes will be made to the existing long term capital gains rates for 2010 as this administration does not want to jeopardize the economic recovery by raising tax rates so soon and until there is definite confirmation that the economy is recovering and unemployment rates are dropping. In addition, as Obama has stated many times, he would not raise tax rates on the low and middle income taxpayers.

 

http://taxes.about.com/od/2009taxes/qt/2009_tax_rates.htm

 

Edited by Bill on 9/29/2009 at 5:14 PM

Expert:	Bill
Pos. Feedback:	99.6 %
Accepts:
Answered:	9/29/2009

Enrolled Agent

EA, QPA, CHFC, CEBS, CLU - 29 years experience providing financial advice