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The holding period to qualify for favorable tax treatment has varied from six months to ten years (see History above). There was special treatment of assets held for five years during the presidency of George W. Bush. In her 2016 presidential campaign, Hillary Clinton advocated holding periods of up to six years with a sliding scale of tax ...
The second is the indexation method, which allows individuals and firms to apply an index factor to increase the base cost of the asset, thereby decreasing the final capital gain value. [6] The third is the ‘other’ method, and involves use of the general capital gain formula whereby the base costs of the asset are subtracted from its final ...
Individuals paid capital gains tax at their highest marginal rate of income tax (0%, 10%, 20% or 40% in the tax year 2007/8) but from 6 April 1998 were able to claim a taper relief which reduced the amount of a gain that is subject to capital gains tax (thus reducing the effective rate of tax) depending on whether the asset is a "business asset ...
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Many parents assume ownership of a 529 college savings plan for their children, which increases their net worth until it's time to use the money for school. 529 plans grow tax-free and ...
This treatment would compel a taxpayer to sell a Section 1231 loss asset at the end of a year to get an ordinary loss and hold a Section 1231 gain until the next taxable year to receive capital gains treatment. To limit the impact of this undesired result, Congress included 1231(c). This is a controversial topic in U.S. taxation. [citation needed]
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Tax basis of property received by a U.S. person by gift is the donor's tax basis of the property. If the fair market value of the property exceeded this tax basis and the donor paid gift tax, the tax basis is increased by the gift tax. This adjustment applies only if the recipient sells the property at a gain. [7]