House cap. gains cut to cap at 15%?

Discussion in 'Professional Trading' started by USAtrader, May 19, 2003.

  1. Noticed in the table of the various cuts being fought between house and senate versions, from the NYTimes on friday, that the house is looking for capital gains to cap out at 15%.

    Were they just reffering to long-term rates?

    (My eyes became watery imagining 15% cap on short-term rates!)
     
  2. Yeah, right. Dream on.
     
  3. THat's what I'm saying. I was dreaming.
     
  4. I'm pretty sure that they will still treat short term gains as ordinary income.

    Sucks for us.
     
  5. It did pass the house, and will pass senate today. bush said he will sign.

    Cap gains will now be long term 15%, short term, regular rate.
     
  6. gms

    gms

    Will the new rate be retroactive to 1/1/2003?
     
  7. Yes, but for futures traders, 60% still is long term. So we get a 15% rate on 60% of gains compared to a 20% rate before.
     
  8. What can I say.... Glad I voted for bush. The job of any elected official is to reduce taxes and then get out of my face. Bush is doing just that.

    For us traders, this means that we should start looking much longer term. You think gold is higher in a year, buy some nem and pay 15% on it. You think this new tax bill will make the tax code many times harder to understand, buy some HRB and hold a year. You like beer, go buy some BUD and hold a year. Win-Win.

    Now that this is settled, lets get back to the important issues, like finding some more terrorists.
     
  9. corvus

    corvus

    But don't hold two years...
     
  10. Robert,

    If such a bill passed, do you think the new 15% rate would apply to the 60% portion of Section 1256 contracts?

    Regards,

    Michael
     
    #10     May 23, 2003