If you make an Adjusted Gross Income less than $65,100 for couples and $32,550 for singles...read on. Otherwise, this probably won't be too exciting for you. The last Bush Tax Cut to go into effect allows for those with the income levels stated above to skip capital gains taxes on the sale of Stocks, Funds, and other assets like Vacation homes so long as you have owed it for less than one year. You would pay 0% tax on the amount up to that limit...so let's say you made $55,100 as a couple...your first $10,000 would be tax free in the sale.
Don't want to sell that investment, here is a quote from the above references Forbes article:
What if you qualify for the 0% gains rate but don't want to sell your stock now? Maybe you don't need the cash. Or maybe you think that the stock will go higher? Not to worry, you can sell shares at a profit and buy back the same stock immediately, replacing your old holdings with new stock with a higher basis. (No, the "wash sale" rules, which make you wait 31 days to replace stocks, don't apply if you're selling for a gain.) "It's a great hedge against higher capital gains tax rates in the future, says Marc Soss, a tax lawyer in Tampa, Fla.