Thanks!


"Phil Marti" <prm20871[at]verizon.net> wrote in message
news:tSHvk.453$1a2.72[at]trnddc04...
- quote -

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"DJ Redlocks" wrote:

- quote -

No. The amount that it takes to get the person to the top of the 15%
bracket (see the Tax Rate Schedules) is not taxed. The balance is taxed at
15%. Note that this large of a cap gain would likely result in some AMT, in
which case it wouldn't come out exactly as stated.
- quote -

There's no similar provision in MD law, so you'd pay state/county tax on the
entire gain.

--
Phil Marti
Clarksburg, MD

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

It is my understanding that for people whose income is in the
two lowest tax brackets capital gains taxes are reduced to zero
for 2008-2010. Can someone explain this to me?

Supposing a person with a low income sells an investment
property for a large profit. Would the large profit (around
$500,000) be exempt from capital gains taxes if their
regular income puts them in one of the lower brackets?

Also, assuming that the gain is exempt from federal capital
gains taxes, would any capital gains tax be due to the state of Maryland).

Thanks.

John

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >