Tax Relief May Come To Those Who Wait

Long-term investors can claim lower rates--but it's tricky

Patient investors, you're finally destined to get your reward. After years of heaping praise on the buy-and-hold folks who fund American capitalism, Congress this year is promising new, lower tax rates for profits on assets that are held five years or longer. True, lawmakers might have overestimated people's patience: They voted in the new rate in 1997 but stalled the actual cuts until 2001. In fact, most investors can't reap the benefits for five more years. But the reward will be worth the wait, right?

To continue reading this article you must be a Bloomberg Professional Service Subscriber.