Wouldn't you want to pay capital gains...?

[Tami R.]

I have always heard capital gains is terrible, etc... but I have a business partner in another venture and he says when you pay taxes it's meaning you are making money.

The other thing is my ordinary tax is at 37% (fed/state of Iowa) and capital gains is at 24% so wouldn't I rather hold the property for 366 days and pay capital gains?

[Steve L.]

Here is my mental chart:

NO TAX > LONG-TERM CAPITAL GAIN TAX > SHORT-TERM CAPITAL GAIN TAX > MAKING NO MONEY

Why does Warren Buffet pay a lower tax rate on his income than his secretary?  Because he makes the smart kind of income.