Beginning in 2008, long-term capital gains and qualified dividends will be tax free to people who are in the 10% and 15% tax bracket. That would be single people with adjusted gross income up to $32,500 and married filing a joint return with adjusted gross income of $65,150.

Something you might consider if you have to pay tax on a sale, gift that stock to an adult child or parent who might be in that lower tax bracket. They receive the stock at your basis and then will pay the tax on the appreciation. It is a great way to save some tax and also financially help that adult child or parent.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.