Tuesday, November 30, 2010

Still Waiting for Capital Gains Changes for 2011

Well, it's almost December and we still are waiting to find out what is going to happen to the capital gains tax rates and Estate Tax rate for next year.

I really thought earlier in the year we would get notification that the estate tax rates reverted back to 2009 but no such luck.

It's great if you are rich and die with cash type assets to pass on estate tax free to your heirs in 2010 but you have a whole other ball of wax to deal with if you are rich in stocks and real estate which have capital gains tax consequences.

I have been lax in posting because Congress is waiting until the last possible minute to inform us of what to expect in the New Year.

I am rooting for the Bush tax cuts to be extended for at least two years to let things with this economy settle down and give us the ability to plan accordingly.

I do believe in the next 30 days we will find some common ground so until then, I wait with everyone else with fingers crossed.

The good news is that I am seeing some capital freeing up for business purchases. I hope this is a trend that will continue for real estate because it's been a long time coming!

Paula Straub