Similarly, long-term capital losses are first applied against long-term capital gains, with any excess applied against short-term capital gains.
Net long-term capital losses from any rate category are first applied against the highest tax rate long-term capital gains (meaning, for example, gains from collectibles taxed at 28%).
When the partnership makes a profit from its investments, under the law it is treated as a capital gain, and currently the long term capital gains tax rate is significantly lower than the rate on wages.
The new higher 20% capital gain rate plus the 3.8% Obamacare tax makes a top long term capital gain rate of 23.8%.
Traditional oil and gas wells are a long term capital investment similar to an office building.
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Long Term Capital Management (LTCM), a New York fund, came close to precipitating a global crisis in 1998.
If you make less, your long term capital gain rate will probably remain 15% regardless of whether you sell in 2010 or 2011.
If Congress were to let the Bush cuts expire in December the long term capital gain rate for most people would be 20% in 2011.
Depending on your facts, it might be long term capital gain.
Whether you have appreciated stock or real estate, you may be tempted to cash in on the lowest long term capital gain rates in a generation.
As he noted, until 1969 the top capital gains tax on long-term capital was 25%, but in the same year, the aforementioned rate was increased to 50%.
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Then giant hedge fund Long Term Capital Management collapsed due to big bets on Asian currencies, causing problems also for the large banks that had financed it.
This works well as long as capital markets are liquid, but not when the credit tap is turned off, as happened in 1998 after Russia's sovereign-debt default.
Dire talk this spring of a systemic problem with hedge funds--on the magnitude of 1998's Long Term Capital Management crisis--has not played out in reality, many analysts say.
But, as people take their long term capital gains, they will likely leave their money parked on the sidelines rather than reinvesting, which slows the market in 2011.
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Some events are exceedingly rare, but may have consequences large enough to pose truncation risk on a business enterprise, such as Long Term Capital Management in the late 1990s.
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On Wall Street, China is the driving force behind the commodity bull market, and a great fundamental story for long term capital appreciation while US and European markets stagnate.
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Managers began to use less internal leverage following the infamous blowup of the Long Term Capital Management hedge fund in 1999, although that has been edging back up in recent years.
Former House Speaker Newt Gingrich, Rep. Ron Paul of Texas and Texas Gov. Rick Perry all want to eliminate all taxes on long term capital gains, while former Pennsylvania Sen.
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Remember when the options-pricing pioneer Robert Merton won the award in 1997 a year before his hedge fund Long Term Capital Management imploded and almost took down the world financial system?
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The stock was subject to restrictions, but the partners thought it was better to pay tax that year so increases in the Cap Gemini stock would be long term capital gain.
Creating an Ultra-Long Term Capital Gains tax rate .
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Let the well-to-do think the tax increase will come for them so they will take their long term capital gains this year at the lower tax rates, raising a huge one time windfall of tax revenues.
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Anyone who has studied or lived through the financial panics of 9-11-2001, the 1998 collapse of Long Term Capital Management, the 1989-1991 savings and loan disaster and the 1994 Mexican peso devaluation can remember that they were similar in magnitude.
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According to an Internal Revenue Service study, back in 1995, when the top long term capital gains tax rate was 28%, the 400 taxpayers with the highest reported incomes paid an average effective tax rate of 30% of AGI.
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If the Bush tax cuts are allowed to expire, as currently scheduled, at the end of 2012, the top rate on ordinary income will rise from 35% to 39.6% and the top rate on long term capital gains will rise from 15% to 20%.
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When a company buys back stock instead of paying a dividend, the stock value appreciates by the like amount of the dividend and long-term shareholders get a 50% savings on their tax bill (assuming a 40% ordinary income tax rate versus a 20% long term capital gains rate).
Centimillionaire and former Massachusetts Governor Romney pays such a low rate because most of his income (with the exception of some hefty speaking fees) comes in the form of long term capital gains and corporate dividends, which are currently taxed at an historically low top rate of 15%.
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