Federal Tax Rates

Capital Gains Tax Rule (For individual taxpayers)
For Property Sold After May 5, 2003
Term	Holding Period	Maximum Tax Rate
Short Term	Less than or equal to one year	38.6%
Long Term	More than one year	15%
Unrecaptured §1250 Gain	More than one year	25%
*Collectibles	More than one year	28%
*This category also applies to Section 1202 stock held more than five years and that qualifies for the 50% of gain exclusion.

The top tax rate on net capital gain (i.e., net long-term capital gain reduced by any net short-term capital loss) has been reduced from 20% to 15% (and from 10% to 5% for gains that would otherwise be taxed at a regular rate of 10% or 15%) for property sold or otherwise disposed of after May 5, 2003 (and installment sale payments received after that date). The reduced rate applies for both the regular tax and the alternative minimum tax. The higher rates that apply to unrecaptured section 1250 gain, collectibles gain, and section 1202 gain have not changed.

The above information is directly from the IRS web site.

For additional information you may visit the IRS site at: http://www.irs.gov/