Re: How to sell bond fund shares?

["Mark Freeland" <none@null.void.net>]

"Rich Carreiro" <rlc-news@rlcarr.com> wrote in message 
m3ab2creja.fsf@swing-shift.time-tripper.com">news:m3ab2creja.fsf@swing-shift.time-tripper.com...
> "Mr. Nonsense" <mynonsense@mynonsense.net> writes:
>
> > For some reason I though long term capital gain tax rate was 5 years,
> > not 1 year.
>
> You're probably thinking of the late 1990s where for a few years
> we had a lower rate at 1 year and an even lower rate at 5 years.

As far as I know, we are still scheduled to return to those rates in 2011. 
Here's a CCH Tax Briefing dated May 14, 2009 (so it is both reliable - CCH - 
and current), asserting that as of now, the lower cap gains rates in EGTRRA 
(15%/0%) are still scheduled to sunset at the end of 2010, though there are 
proposals to keep these lower rates for all but the highest tax brackets.
http://tax.cchgroup.com/PDFs/Tax-Brief-GreenBook-05-14-09.pdf

As to what they will (in the absence of additional tax legislation) revert 
to, here's a table of cap gains tax rates through 2011 (they revert in 
2011): http://www.taxfoundation.org/research/show/2088.html
In short, the "normal" (1 year+) cap gains rate will be 20%, except 10% for 
those in the 15% and below brackets; while the 5 year plus cap gains rate 
will be 18%/8%.  But remember that there was a small gotcha - that lower 
rate applies only to assets purchased on or after Jan 1, 2001.

Mark Freeland
nBeOwXs@nyc.rr.com