While the write-off would make no difference to a tax-exempt investor, a taxable investor in the 30% tax bracket would get an after-tax income stream comparable to another REIT yielding 7.14%, a substantial difference.
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To say it simply: As demagogues throughout history have discovered, much to their chagrin, higher taxes reduce after tax income by an amount greater then the tax hike.
The Bush Administration's proposed new savings accounts are a step--a remarkably bold one--toward a radical tax change in the U.S. This revolution is moving toward what I and others have long advocated: a flat tax--an income tax system with a single rate that would apply after a high threshold and that would exempt levies on capital gains, dividends and interest.
Some advisers believe the IRS may also be more likely to assert additional income tax penalties after an opt-out, such as civil fraud.
After completion, Pearson will report its 47% share of profit after tax from the joint venture as an associate in its consolidated income statement.
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Immediately after he was inaugurated, Clinton rushed through an 8% increase in the top income tax rate, even though the Democratic Congress was skittish and would have liked more time.
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Writing off the costs each year would substantially boost their after-tax income and increase the attractiveness of contingency-fee cases as an investment, much as tax writeoffs on drilling expenses dramatically increase the odds of financial success in the oil and gas business.
If there is a company sponsored 401(k) the rules regarding distribution may be different than the rules in an IRA. If the household has after tax savings it may be advisable to delay taking income from the pension rollover to a later date when it will not be as restrictive.
An employee of the Congressional Research Service, Hungerford in 2011 published a paper that found that after-tax income inequality rose 11.2 percent between 1996 and 2006.
Roth 401(k)s, on the other hand, are funded with after-tax dollars, so there is no reduction in adjusted gross income -- an important figure in determining tax brackets and the deductions and credits individuals can take.
Over the past 80 years, despite multiple movements in marginal rates up and down, the top 1% of earners paid an ever-increasing share of the total Federal income tax burden reaching its highest point at 40% after the Bush tax cuts and most recently representing 38.7% of total Federal income tax in 2009.
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