President Obama has proposed raising the tax on capital gains and dividends from its current 15% rate to the same rates as earned income. Would it hurt more than help?
Buying a home complicates your tax return but may provide savings. Mortgage interest, points and PMI are deductible, and you may get tax-free profits when you sell.
The president wants to cut taxes on investment and add a 10% credit for businesses that create jobs or raise wages. Some of his proposals already have bipartisan support.
Congress has long set a lower tax rate for investment income, citing the benefit to the economy. But 87% of capital gains are claimed by people making more than $200,000 a year.
The GOP candidate's 13.9% rate draws attention to a tax break for investment execs that taxes profits at the capital gains rate of 15% rather than the regular rate of up to 35%.
Treatment of short-term and long-term losses is different, but either may get you a reduction in taxable income, and therefore tax owed.
With all the maneuvering, it's hard to keep up without a scorecard. Here are the major changes that will affect your taxes this year.
Dec. 31 is the deadline to sell losing investments, open a Keogh account or donate to charity for the 2010 tax year.
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