Ro Verrecchia and I constructed a theoretical model for evaluating capital gains tax
incentives created by the discontinuity in rates.
This methodology, which can only be used effectively because of the surprise nature of the 1997 capital gains tax
rate reduction, avoids potential problems associated with price level studies such as spurious scale effects and potential correlated omitted variables bias.
Under a current plan for capital gains tax
scheduled to take effect in January, the rate will basically be reduced from 26% to 20%.
If the Smiths choose to sell their stock, pay the capital gains tax
, and spend the money, they will have $9,200 left over to spend.
The Taxpayer Relief Act of 1997 lowered the long-term capital gains tax
When these assets are sold by the heirs, the capital gains tax
will be assessed, not on the gain since the benefactor's death, but on the gain in value from the date of the benefactor's original acquisition of the asset.
These cases have important implications for those involved in valuations, because the decisions indicate a marked change from past litigation where the taxpayer had discounted net asset value for potential capital gains tax
So much for simplified, non-distortionary capital gains tax
The threat of capital gains tax
keeps many investors from selling highly appreciated stock.
P tax cut for the rich was the proposed halving of the capital gains tax
For example, recent modifications contained in the Revenue Reconciliation Act of 1990(1) (the 1990 tax act) to reduce capital gains tax
rates, which should benefit the real estate industry, actually result in an increase in effective capital gains tax
Denver-based Capstone Bay, the structured sales division of Ringler Associates, is contacted by more mature women than men who are looking for new tax strategies to save on the capital gains tax
as they exit the traditional 1031 exchange when selling appreciated real estate assets, according to Ringler Associates CEO and President Robert J.