For those individuals in the 10-15% bracket for federal income tax, your capital gains tax rate was 5% in 2007 and dropped to 0% in 2008. Just be careful that the capital gains don’t push you into a higher tax bracket. Of course this is if you’re lucky enough to have capital gains in this lousy market. For the rest of us, remember that the maximum deduction for capital losses is $3,000 ($1,500 if married filing separately). Capital losses in excess of the deduction may be able to be carried over to future tax years.
IRS Pub 1040 Schedule D Instructions p. 2 and NPR.
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