Tax Tips 2004 - Capital Gains

New for the 2004 tax forms - what taxes are owed on capital gains. Amy Feldman is senior if you sold stock in 2003, what you pay in taxes all depdns on the day you sold your shares. NEW FOR THE 2004 TAX FORMS... WHAT TAXES ARE OWED ON CAPITAL GAINS. AMY FELDMAN IS SENIOR WRITER FOR MONEY MAGAZINE AND SAYS THIS YEAR IF YOU SOLD STOCK, WHAT YOU PAY IN TAXES ALL DEPENDS ON THE DAY YOU SOLD YOUR SHARES:

"What you have this tax year is a lot of complications. On Schedule D this year there is a whole separate column for post-May 5 2003 capital gains. So, you will have two rates. You will have the old rate and the new 15% maximum rate."

This applies to the sale of stocks, bonds and other investments, but there are exceptions. The new lower rate does not apply to collectibles, unrecaptured 1250 gains and gains on certain qualified small business stocks. Instructions for those can be found on Schedule D - Instructions for form 1040. The good news is that DIVIDENDS you may have received from stocks are taxed at the new lower rates, even if you got them before the May 5th effective date of the new tax law.

Not meant to be a complete discussion of any tax subject. We are not responsible for any action taken based on this information, which is from reliable sources and believed to be accurate. See your tax advisor before taking any tax related actions.