The capital gains rates have been very attractive since 2001. The maximum capital gain rate is normally 15% unless you are in the 15% income tax bracket. For those whose tax bracket is 15% or lower, the maximum capital gain rate is 5%. In 2008, the 5% rate decreases to 0%. This reduced rate will continue through 2010. If you have flexible income, this may be the time to choose to sell property to take advantage of this rate. As the tax law stands now, the lower capital gain rate of 15% will be in existence through 2010. After that, rates are scheduled to return to the 20%/10% limit in effect before the 2001 change. Remember also that dividends will be taxed at ordinary income rates rather than capital gain rates after 2010.

This may be the time to talk with us about capital gain planning before it’s too late.