The Balanced Budget
Agreement signed into law by President Clinton on August 5, 1997 included tax
cuts positively impacting America's auto dealers. Listed below are the
highlights of the new tax laws impacting auto dealers.
Capital Gains Tax Cut
Cut the Capital Gains tax rate from 28 percent to 18 percent for
investments purchased after 2000 and held at least five years.
Cut the Capital Gains tax rate to 20 percent for investments sold before
July 29, 1997 and after May 6, 1997 and held for a year.
Cut the Capital Gains tax rate to 20 percent for investments sold after
July 29, 1997 and held for at least 18 months.
Death Tax Relief
Qualified family-owned businesses, including auto dealers, will receive
$1.3 million in estate tax relief beginning January 1, 1998.
For other estates, the $600,000 exemption increases to $1 million by
2006.
