<topic sku="dlxbiz" tNum="289610" author="erinpa" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about qualified 5-year capital gains</title><category>investing</category><klink type="cncpt">Tell me about qualified 5-year capital gains</klink></index>
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<p>Beginning in 2001, the sale of investments held more than five years may result in qualified 5-year capital gains. If you are in the 15% <glossary>tax bracket</glossary>, the maximum tax rate on qualified 5-year capital gains is 8%, instead of the 10% capital gains tax rate on other long-term gains. If you are not in the 15% tax bracket, you will also get a reduced rate on qualified 5-year capital gains on assets that you purchase after the year 2000. This means that taxpayers in brackets above 15% won't be able to take advantage of this rule until 2006.</p>
<p variant="note">GainsKeeper makes it simple for you to use your Money file to complete your IRS Schedule D, and offers precise capital gains calculations that account for wash sales, stock splits, and mergers and spin-offs. Plus, you'll have access to tools and suggestions that could help you save money on your taxes. All Microsoft Money users receive a free 30-day trial for GainsKeeper and discounts on an annual subscription. Money Premium and Money Small Business users get a whole year free! </p>
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<tease>Learn more about GainsKeeper</tease>
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<li>On the <emph>Investing</emph> menu, click <emph>Portfolio</emph>.</li>
<li>In the left pane on the <emph>Other Tasks</emph> list, click <emph>Capital gains tracking for Schedule D</emph>.</li>