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Thomas Brun wrote:
>
> Hello,
> Has anyone heard how the capital gains tax cut will treat gains on
> futures Contracts? In the past gains and losses were treated as 60%
> long term and 40% short term. If Form 6781 isn't changed then the tax
> for profits on futures contracts should be taxed at a maximum rate of
> 18.8%.
>
> Short term gain: 20% tax rate.
>
> Long term gain: 18% tax rate.
>
>
>
> 60% x 18% = 10.8% Long term
>
>
> 40% x 20% = 8.0% Short term
> ------- --------------
> 18.8% Total
>
> Does this sound correct?
>
> Regards,
>
> Tom..
Since the 18% rate will not be effective until 2001, the 18.8% in the
above example, would also, not be in effect until the year 2001. I
apologize for the oversight.
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