Section 2 General Rules

• Library: Business Transitions 2009 Supp

The maximum 15% rate on adjusted net capital gains—generally
the net capital gain from capital assets that have been held for
at least 12 months—and on qualifying dividends was extended
to December 31, 2010, by the Tax Increase Prevention and Reconciliation Act of 2005, Pub. L. No. 109-222, 120 Stat. 345.

The current maximum rate on ordinary income is 35%.

Proposed Treasury Regulation § 1.302-5, 74 Federal Register 3509 (Jan. 21, 2009), provides for a share-by-share approach to the determination of gain...