Is the taxable rate for capital gains changing in 2008?
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Oldman answered 2 years ago …
Yes, at the lowest income levels, the long term cap gain and qualified dividend rates drop to ZERO for all whose Taxable Income is at or below 15% tax rate: for individuals, < $8025 taxable income; Married filing jointly < $16050; Heads of Households < $11450, This is for 2008 & 2009, although the taxable income listed for 2008 is reasonably accurate, one won't know the upper limit of the taxable income of the 15% band until around Oct. 2008 for FY 2009. After 2009, the favorable, reduced rates may revert to the prior marginal and 20% LTCG rates.
The standard deduction for individuals under 65 in 2008 is $10900 (MFJ); 5450 (S&MFS =single and Married, filing Separately) & $ 8000 Head of household.
Additional deductions per person over 65 rise to $1050 M; $1350 single;
The 2008 personal exemption increases to 3500 in '08 for filing during 2009
