2011 Long Term Capital Gains Question (real estate, credit, buying, interest)

[NSX]

It looks like Obama will get his way and long term capital gains will go from 15% to 20% in 2011.

How will it be handled for gains that are made but unrealized in 2010, but not realized (sold) until Jan 2011? Taxed at 15% or 20%?

Example:

Buy 1000 shares of stock XYZ at $5 in 2008 and the price rises to $25 by Dec 2010.

Selling on Dec 31, 2009, the LTCG would be: (1000*($25-5)*15%) = $3000

would the tax be the same if you sold on Jan 1, 2011 or would it be (1000*($25-5)*20%)= $4000?

[HappyTexan]

At this point all the Bush tax credits are due to expire..for everyone across the board.
I know what Obama said..but nothing has appeared in Congress yet limiting those cuts.

I'd plan accordingly..your trades have to settle by 12/31/2010 so you have time.

You "realized" the gain in 2011 so it's 2011 taxes that kick in.

[chicubs]

Kind of sidetracking but with everyone cashing in their investments at year end to get the favorable tax treatement, it sounds like this would create a great buying opportunity in the market.

[StealthRabbit]

Originally Posted by chicubs

Kind of sidetracking but with everyone cashing in their investments at year end to get the favorable tax treatement, it sounds like this would create a great buying opportunity in the market.

especially investment Real Estate (if you have cash, since the banks don't seem to have any to LEND, while they are paying NOTHING for interest). Maybe they are all going short on margin! (your margin)

Investing is gonna take a new shape as all the rules shake out, but the additional tax hit on investments (SS + medical) is gonna make many folks flee certain investments that have been lucrative in the past.

I've been negotiating with several commercial property investors who are transitioning out of some properties with great cash flows.