Heads-up for tax planning
Since tax season just ended, here are some reminders that popped up. If
you hold an asset over one year you get to pay long-term capital gains
on it when sold. And the rate is 15% since 2003. However, if your tax
rate is 10 or 5%, then the long-term capital gains rate is only 5%. The
threshold for this tax rate for 2007 is $63,700 for married couples
filing jointly and $31,850 for single filers. For 2007 tax planning, if
you can squeeze under this threshold, it can save you big bucks. Maybe
you can give to charity or make and IRA contribution. This is just a
heads-up for tax planning.