Doron F. Eghbali Business Law Blog on Lawyers.com

Tax Rates on Investment Income in 2010

Tuesday, November 24, 2009 by Doron F. Eghbali

It appears most experts believe tax rates for investment income will
remain the same for 2010 mostly because economy is still weak and it is
an election year. However, Congress might reconsider the idea of tax
hikes if the economy slumps again.

So far, Congress watchers believe the following tax rates for investment income in 2010 will be as follows:

Long-term capital gains tax on stocks, bonds, mutual bond shares
and other securities to be 15%. "Long-term" refers to securities owned
for more than one year. It is also the top rate on most dividends.
Gains for securities held for less than one year will be subject to ordinary income tax rates.
Gains on arts and most collectibles will be at 28%.

If Congress does not act long-term capital gains will remain 15% but
they will automatically rise to 20% in 2011. The top rate on dividends
is scheduled to rise to 39.6% in 2011.

Posted at 11:33 AM

Topic: Business Law