If you're investing in exchange-traded stock funds, you shouldn't have too many shocks this tax season. But if you've got big gains from ETFs that invest in commodities, like corn, you could be shucking out some extra dollars to the tax man.
What do you earn from your mutual fund? It depends on how you slice it. But the more you know about your real return, the more you're likely to keep for yourself.
Tax season is here once again, and many American stock traders filling out federal Schedule D forms are probably wondering why they made so many trades in 2014. However, the federal forms are just the beginning for residents of these 10 states, who are likely asking themselves another question: "Where did all my profits go?" Here's a list of the 10 states with the highest marginal tax rates on trading profits, according to the Tax Foundation:
Arkansas lawmakers moved Thursday to restore a 2013 capital gains tax break that had been scaled back to help pay for a $102 million middle class income tax reduction that Gov. Asa Hutchinson championed.
Sure, the capital gains tax rules are complicated. But if you use them to your advantage, you can significantly cut your tax bill.
For businesses, it is important to be aware of strategies that can help decrease tax liability. In this post, we want to talk about one such strategy: 1031 exchanges, also called like-kind exchanges. This tax strategy essentially involves the exchange of a business or investment asset—usually, but not necessarily, real estate—for another. Corporate stock and partnership interests are not eligible for 1031 exchanges.
Over the past two years, U.S. equities have delivered very strong returns. The one downside is that in both years, you received large capital gains distributions from your U.S. equity fund investment. If you had no personal loss carryforwards, you had to cut a check to Uncle Sam when you filed your 2013 tax returns and will have to do so again for your 2014 taxes.
One of the incentives for saving for retirement for self-employed individuals is the tax deduction for retirement plan contributions. A popular choice is the simplified employee pension, or SEP, plan. Deductible contributions of up to 25% of net self-employment income, with a limit of $52,000 for 2014 and $53,000 for 2015, may be made to this type of plan. Suppose you're self-employed and you have a sizable capital-loss carryover, should you contribute to your retirement plan or should you do something different this year? One possibility is using a portion, or perhaps all, of the funds to invest in nonretirement plan growth investments. This may include, but isn't limited to, a diversified investment portfolio and/or real estate.
Here’s the breakdown of the long-term capital gains rates under the current federal income tax rules.
Understanding the capital gains tax in 2015 can help you keep more of your money if you know what to look for. - Sean Williams - Investment planning
A higher exemption for the federal estate tax is shifting the focus to minimizing capital-gains taxes and state levies. Here are the latest strategies.
California lands in the top spot, with taxpayers there giving up one-third of their investment profits.
Time to stop worrying about death taxes and start worrying about the capital gains tax.
A capital gain occurs when you sell something for more than you spent to acquire it. This happens a lot with investments, but it applies to personal property, too. Buy a used car for $3,000 and sell it for $5,000 a week later, and you have a $2,000 capital gain - same as if you bought stock for $3,000 and sold it for $5,000. Every taxpayer should understand a few basic facts about capital gains taxes.
Might you owe capital gains tax on the sale of your home?