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Re: Bond Exposure
Old 05-04-2005, 06:16 PM   #61
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Re: Bond Exposure

MJ,

Gains from I-bonds when you sell are considered interest, not
capital gains. I was just pointing out that, in general, both interest
and capital gains are capped at 15% max (currently) to reinforce
the case for savings in a taxable account as an alternative to
saving in a 401k beyond the company match.

Cheers,

Charlie
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Re: Bond Exposure
Old 05-05-2005, 07:27 AM   #62
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Re: Bond Exposure

Sounds like some miscomunication going on here on federal income taxes. Long term capital gains and qualified dividends: max tax rate 15% (with a few exceptions). Interest is taxed at ordinary income rates, including I bond interest.
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Re: Bond Exposure
Old 05-05-2005, 10:50 AM   #63
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Re: Bond Exposure

Martha, mea culpa ...... my senior moments seem to be occurring
closer and closer together. Thanks for the correction.

Cheers,

Charlie
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Re: Bond Exposure
Old 05-05-2005, 12:27 PM   #64
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Re: Bond Exposure

I think the good news is if you're married and ER'ed and are pulling in enough interest and unqualified dividends to trip past 15%, you're living pretty dang good.
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Re: Bond Exposure
Old 05-05-2005, 12:39 PM   #65
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Re: Bond Exposure

Quote:
Originally Posted by Martha
Sounds like some miscomunication going on here on federal income taxes. Long term capital gains and qualified dividends: max tax rate 15% (with a few exceptions). Interest is taxed at ordinary income rates, including I bond interest.
Thanks as well Martha.
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