Squeeze your tax bill

摘要

How fishing vessel owners can benefit from the new federal tax law. The new tax act signed into law last May dramatically changes the federal tax landscape for the fishing industry. Fortunately, this tax act is good news for fishermen. The top tax rate on net long-term capital gains for individual taxpayers has been reduced from 20 percent to 15 percent. This is welcome news for fishermen considering retirement. The lower rates apply to sales made after May 5, 2003 and before January 1, 2009. Most significantly, the new law reduces the tax rate on the sale of fishing rights. Suppose you received original issuance IFQ's and you are considering selling them in December of 2003. Due to the new tax law, you will pay only a 15 percent federal tax rate on the sale.