Tax Guru – Ker$tetter Letter

I received this from a reader back in early September:

Subject:  possible link of interest for your blog

http://www.fulcruminquiry.com/Investment-Calculator.htm

This is an online interactive calculator that addresses whether one should sell now to take advantage of lower capital gains rates that now exist. 

David Nolte
Fulcrum Inquiry

I Wrote back:

David:

Thanks for passing that along.  It’s an interesting calculator, albeit with too many assumptions required to be realistically practical.

I was surprised not to see any part of your discussion or calculation that takes into account the zero percent LTCG rate for sales in 2008, 2009 & 2010. That is a very real issue, as opposed to the possible future rate increases, and is a question we tax pros have been receiving frequently for the past year or so.

Your calculator could cover such an analysis as whether the transaction costs of selling now to tax advantage of the zero percent bracket justify it, plus the fact that there will still be tax on the portion of the gains that are above the new zero percent rate bracket.

Kerry Kerstetter

To date, no reply has been received