The New Tax Act: Should You Revamp Your Portfolio?
by Maria Crawford Scott
But making certain investment decisions, particularly regarding taxable versus tax-deferred assets, wont be any easier.
Under the Jobs and Growth Reconciliation Tax Act of 2003, qualified dividends and long-term capital gains are taxed at a maximum rate of 15%; under the old rates, dividends were taxed as ordinary income at a maximum rate of 38.6%, and long-term capital gains had a top rate of 20%. Short-term gains are still taxed as ordinary income. The new rate applies to qualified dividends received on or after January 1, 2003 and long-term capital gains (held more than one year) realized on or after May 6, 2003.
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