Your Money: Jul. 6, 1998

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TAX CUT ON CAPITAL GAINS

If you've been longing to sell a stock that you haven't held long, you might soon get a break. Today stocks must be held at least 18 months to qualify for the lower capital-gains tax rate, which is usually 20%. But that holding period will be reduced to 12 months under a $13 billion tax bill that President Clinton agreed to sign last week.

YOU CAN NEVER BE TOO RICH

Whenever Congress writes new tax laws, it makes mistakes. Usually they get fixed. But when such an error granted a windfall to those who inherit estates worth more than $17 million a year, Rep. Bill Archer (R., Texas), chairman of the Ways and Means Committee, made sure that provision stayed just as it was. His action will save about $200,000 each for a few hundred heirs each year. Cost to the Treasury: $880 million over 10 years. If you're one of the lucky few, you can call to thank Archer at 202-225-2571.

NO NEW (INTERNET) TAXES?

Web users may soon get protection from new state taxes. Last week, saying it wished to promote Internet use, the House passed a bill that would prevent most states from taxing online-access fees for three years. It would also prohibit discriminatory taxing of online commerce. Those who would log on in the states that now collect Internet-access taxes (CT, IA, ND, NM, OH, SD, TN, WI)--and are allowed to continue to collect them--are forewarned.

--By Harriet Barovick