As you know, Congress recently passed the Jobs & Growth Tax Relief Reconciliation A.ct of 2003. The word “Simplification” does not appear in the title and is not an oversight.
One of the areas of ”relief” in the new tax law relates to capital gains. The new maximum capital gain tax rates (only ten of them now • 5%, 75%, 8%, 10%, 14%, 15%, 18%, 20%, 25%, 28%) depend on what you bought, when you bought it and whether or not there is a full moon when you sell it.
Several forms (including 2439, 4684, 4797, 6252, 6781 and 8824) and worksheets in the instructions may need to be completed before you get to the capital gain Schedule D. The
draft of the new Schedule Disaster has a total of 53 lines (18 to compute the gain, 35 to compute the tax). The Paperwork Reduction Act in Action!
Because of the complexity of the new tax law, the partners held an emergency meeting and voted to remain open this tax season. If you feel we can assist you in your tax planning or
preparation, please give one of our professionals a call.