Washington leaves out of the household income number such items as realized capital gains and payments from pension plans and 401(k)s.
This hits interest, dividends, annuities, royalties, rents, income from a passive trade or business, and realized capital gains other than passive.
The sudden downward move caused stop orders for many stocks to be executed, leaving some shareholders with unanticipated losses or realized capital gains.
Realized Capital Gains: Here the effect is the largest.
FORBES: The Underappreciated Impact Of Stocks On The Economy
In the meantime, you can lower your tax exposure by using a tax-deferred account to hold dividend-paying stocks, avoiding unnecessary trades and offseting realized capital gains with realized losses.
The reason for this is that when the capital gains rate was cut, more taxpayers sold their capital and realized their gains, and a rising stock market produced more gains.
You use it to absorb capital gains realized elsewhere in your portfolio, making those gains tax-free.
The Laffer effect is much stronger with capital gains taxes because ultimately capital gains are realized voluntarily.
FORBES: Capital Gains Tax is an Economic Monkey Wrench (2012)
One exception may be capital gains tax cuts, because the investor has some influence over when capital gains are realized.
The rich especially benefit from two of the biggest: capital gains realized at death and investment earnings of retirement accounts.
FORBES: Senate Budget's Bad Math: Axing Tax Breaks For Rich, Big Business Isn't Enough
Has no special retirement account qualities, meaning that there are no tax breaks for contributing and taxes are owed every year for any interest, dividends, or capital gains realized.
The amount and nature of taxation, whether of the income stream generated by a particular investment, or that levied on interim dividends or capital gains realized upon the disposition of an asset, must be among the many complex factors considered by any rational investor in assessing the relative merits of an investment opportunity.
FORBES: Buffett's Billions Can't Buy Him Exemption From His Tax-Averse Past
Carried interest typically sets aside 20% of a fund's total net realized gains to the venture capital firm.
That can save you hundreds of dollars in taxes on capital gains that you have realized elsewhere in your portfolio this year.
WSJ: The Intelligent Investor: The Hazards of Tax-Loss Harvesting
Capital gains tax liabilities may be realized, commissions will occur when stocks are sold and you may even have to pay fees to transfer money out of your brokerage account.
U.S. housing prices started growing above the normal 4% per annum in 1998, a result of a change in U.S. tax law that virtually eliminated capital gains taxes on the gains realized on most people's primary residences.
应用推荐