WTS News

In 2003, the US tax rate on long-term capital gains of individuals was reduced to 15% (or 5% for individuals in the 15% or lower tax brackets).  Later in 2008, the 5% bracket was further reduced to 0%. Even if both rates were scheduled to expire in 2008, they were given a reprieve and extended through 2010 as a result of the Tax Increase Prevention and Reconciliation Act signed into law on May 17, 2006.

Without further intervention these reduced tax rates are scheduled to revert to the rates in effect before 2003, which were generally 20/10%, in 2011.

If it is intended to sell valuable assets in the near future, tax planning strategies which will take into account possible changes with respect to the taxation of capital gains should be considered now. It is uncertain if the proposed changes with respect to the taxation of capital gains of individuals will really happen, but the worst case scenario is a tax increase.

Contact person:
Manuel Vogt
Manager
Dipl.-Kaufmann, CPA, Enrolled Agent

WTS Navitax Steuerberatungsgesellschaft mbH
Phone: +49 (89) 28646-179
E-Mail: manuel.vogt@wts.de