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Hello, I am wondering what the status is of the IRS Restructuring and Reform Act of 1998.  I have appended paragraph A of _title_ V (Addition provisions) below (together with the general summary heading).  It seems to imply that there is no more 18 month holding period, that all rates as defined in the tax payer relief act of 1997 for holdings of 18 months or more now apply to holdings of 12 months or more.  Is this the case?  Is this now law?  And especially, what is meant at the end by The provision applies to amounts properly taken into account on or after January 1, 1998 ?  Does this mean that the property or security must have been bought after 1 January, or just sold after 1 January? Thanks in advance, -Eric Twietmeyer This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Here follows paragraph A. of _title_ V of the summary: SUMMARY OF THE CONFERENCE AGREEMENT ON H.R. 2676, THE INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT OF 1998            Prepared by the Staff                     of the         JOINT COMMITTEE ON TAXATION               June 24, 1998                 JCX-50-98R _title_ V. ADDITIONAL PROVISIONS A. Elimination of 18-Month Holding Period for Capital Gains The Taxpayer Relief Act of 1997 Act ( the 1997 Act ) provided lower capital gains rates for individuals. Generally, the 1997 Act reduced the maximum rate on the adjusted net capital gain of an individual from 28 percent to 20 percent and provided a 10-percent rate for the adjusted net capital gain otherwise taxed at a 15-percent rate. Under the bill, property held more than one year (rather than more than 18 months) will be eligible for the lower capital gain rates provided by the 1997 Act. The provision applies to amounts properly taken into account on or after January 1, 1998.

Does this mean that the property or security must have been bought after 1 January, or just sold after 1 January? It applies to sales made on or after January 1, 1998. Ed Zollars, CPA (AZ) This e-mail address is being protected from spam bots, you need JavaScript enabled to view it http://www.getnet.com/~hmtzcpas

I am wondering what the status is of the IRS Restructuring and Reform Act of 1998.  I have appended paragraph A of _title_ V (Addition provisions) below (together with the general summary heading).  It seems to imply that there is no more 18 month holding period, that all rates as defined in the tax payer relief act of 1997 for holdings of 18 months or more now apply to holdings of 12 months or more.  Is this the case?  Is this now law?  And especially, what is meant at the end by The provision applies to amounts properly taken into account on or after January 1, 1998 ?  Does this mean that the property or security must have been bought after 1 January, or just sold after 1 January? Thanks in advance, Here follows paragraph A. of _title_ V of the summary: SUMMARY OF THE CONFERENCE AGREEMENT ON H.R. 2676, THE INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT OF 1998           Prepared by the Staff                    of the        JOINT COMMITTEE ON TAXATION              June 24, 1998                JCX-50-98R _title_ V. ADDITIONAL PROVISIONS A. Elimination of 18-Month Holding Period for Capital Gains The Taxpayer Relief Act of 1997 Act ( the 1997 Act ) provided lower capital gains rates for individuals. Generally, the 1997 Act reduced the maximum rate on the adjusted net capital gain of an individual from 28 percent to 20 percent and provided a 10-percent rate for the adjusted net capital gain otherwise taxed at a 15-percent rate. Under the bill, property held more than one year (rather than more than 18 months) will be eligible for the lower capital gain rates provided by the 1997 Act. The provision applies to amounts properly It means that the holding period has been reduced from 18 months to 12 months and that all sales made prior to enactment (going back to  01/01/98) are covered under the act.  President Clinton signed the bill, if I remember correctly, on July 22, 1998.  All sales made prior to that date (in 1998) are covered. Jack - John H. Fisher - This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Website:  http://members.aol.com/TaxService/index.html Where ignorance is bliss, 'tis folly to be wise!!!

And especially, what is meant at the end by The provision applies to amounts properly taken into account on or after January 1, 1998 ?  Does this mean that the property or security must have been bought after 1 January, or just sold after 1 January? Thanks in advance, It means sales occuring in 1998 are subject to 12 month holding period

by The provision applies to amounts properly taken into account on or after January 1, 1998 ?  Does this mean that the property or security must have been bought after 1 January, or just sold after 1 January? Thanks in Sold on or after 1/1/98.

It means sales occuring in 1998 are subject to 12 month holding period I know I keep nit-picking this point in many posts but: the required holding period is GREATER than 12 months if you want long term capital gain treatment.