Something people may not be aware of is a "loophole" for the little guy on cap gains.
Examples:
Roth IRA 0% Cap Gains rate
Lower income people- if you are in the 15% bracket or below I believe the cap gains rate is 0 to 10%
When you sell your house - Cap gains rate is 0% up to a certain amt.
Transfer stock to your Children, no cap gains and the cost is reset to market price.
Are these loopholes too?
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
Something people may not be aware of is a "loophole" for the little guy on cap gains.
Examples:
Roth IRA 0% Cap Gains rate
Lower income people- if you are in the 15% bracket or below I believe the cap gains rate is 0 to 10%
When you sell your house - Cap gains rate is 0% up to a certain amt.
Transfer stock to your Children, no cap gains and the cost is reset to market price.
Are these loopholes too?
Yes, when you are below a certain income, you pay even lower rates for capital gains and dividends. I suppose you can call that a loophole too, because they get a favored rate. It's all in the eye of the beholder since I doubt you'll find the word "loophole" in the tax code.
Also, here are examples of nonrefundable and refundable tax credits...
NON-REFUNDABLE TAX CREDITS
•Adoption Expense Credit
•Child and Dependant Care Credit
•Credit for the Elderly and Disabled
•Credit for Qualified Alternative Fuel Vechicles
•Hybrid Vechicle Credit
•Credits for Energy-saving Home Improvements
•American Opportunity Credit
•Lifetime Learning Tax Credit
•Retirement Saver's Tax Credit
•Foreign Tax Credit
•Child Tax Credit (generally not refundable)
REFUNDABLE TAX CREDITS
•Earned Income Tax Credit
•Credit for Estimate Tax Payments
•Credit for Taxes Withheld from Salaries and Wages
•First-Time Homebuyer Credit
•Making Work Pay Credit
•Health Coverage Tax Credit
•Additional Child Tax Credit (partially refundable)
•Alternative Minimum Tax (AMT) Credit (partially refundable)
