Maybe if we say it enough, it will actually get done. “The correct rate for the capital gains tax is zero, zip, nada. Perhaps it is even negative!”
These complex formulas help decide when highly appreciated investments should be sold and the proceeds put in a different investment philosophy.
The IRS does not do a good job of helping people understand capital gains taxes. They provide a worksheet to help you calculate it, but it has so many steps that it’s nearly impossible to figure out what’s going on.
Now you may pay one of at least four different capital gains rates. The strategies to deal with capital gains differ for each level.
This technique can avoid paying any tax, a savings worth up to 36.1%.
Here’s the tax table for the 2013 capital gains tax.
Tax on capital gains is scheduled to rise and become much more complex at the end of this year. Keeping your head in the midst of these changes can help your bottom line. Government should tax either the value of an asset or its yield but not both.
Starting in 2013, pending further legislation, the capital gains tax will go up to 20%.
Politicians are giving us no incentive to take care of ourselves. They are ensuring that government will need to save us.
The correct rate for the capital gains tax is zero, zip, nada. Perhaps it is even negative!
Consider moving your official place of residence to your vacation house, live in it 760 days out of five years, and then take the exclusion.
The 3.8% Net Investment Income Tax (NIIT) is a Medicare contribution tax on investment income.
After over a decade of broken promises and rising costs, our need for a more sustainable tax system is acutely felt.
Here is a reference chart with 2024 income tax rates, capital gains rates, retirement contribution limits, and more.
Gifting depreciated stock is more complex and never to anyone’s advantage.
Share class exchanges can create small savings for investors who have found themselves invested in the wrong share class. However, it is better to buy the lower cost funds in the first place.
We’ll have to wait and see what they really mean by these lofty goals.
Sometimes you may want to check on the original purchase dates of the holdings in your accounts during the current tax year. Luckily, there is a page on Schwab Alliance which shows you just that.
Why create tax rules which expire so soon after they are made? The answers are as frustrating as the uncertainty the sunsets create.
Here is a reference chart with 2023 income tax rates, capital gains rates, retirement contribution limits, and more.
What does Schwab do when your Donor Advised Fund has insufficient funds for a recurring grant?
Calculating the fair market value of property varies in difficulty depending on the type of property and the date of death.
If you have cost basis information missing in a taxable account, it is important to work with your custodian on correcting the missing information.
One obscure way we bring value to clients is how we bill them.
The annual drag of taxable account taxation may seem like a small amount, but the effect over long periods of time such as 30 years is significant.
Once your Donor Advised Fund has been opened, Schwab Charitable has a very straightforward process for donating appreciated stock to charity.
I recently received the following paraphrased questions from a prospective client and here were my replies.
Doing some conversion is usually much better than doing no conversion at all. We offer these four simple but effective strategies to calculate a good-enough conversion target for this year.
Sometimes you may want to check in on your current running total of net capital gains during the current tax year. Luckily, there is a page on Schwab Alliance which shows you just that.
Rekenthaler’s proposed narrowing of choices to a one-size fits all national solution provides a poor substitution for our current choices.
During a down market like this one, now is your chance both to harvest capital losses as they occur and rebalance your portfolio.
There are at least four different capital gains tax rates. This 2017 article has how to minimize your tax owed at each one.
While you can only use $3,000 per year of capital losses to reduce your taxable income, you should bank as much capital loss as possible for other future uses.
It looks like the calculator is simply wrong. It uses a 3% tax rate instead of the 6% tax rate they cite for the Elizabeth Warren’s Tax Plan.
The process of correcting cost basis problems, although time consuming, is worthwhile.
This June, the IRS came out with their final ruling on how charitable gifts to receive state tax credits will be handled. This is how the strategy works now.
Thirty years of interest, dividends, and capital gains tax is a significant savings.
An analysis of changing to lower cost funds.
This person has no IRA balance, but is about to get one with an IRA Rollover. So the question is one of timing: can they do the IRA Rollover after the nondeductible contribution has already been converted so that their cream and coffee never mix?
If your employer offers a 457 plan, consider taking advantage of the ability to shelter more money each year from taxes in a Roth account.
The Marotta Investment Committee typically builds portfolios with average expense ratios of about 0.24%.
Is what I’m accomplishing here worth sacrificing the step up in basis? If it is not, perhaps there is a better way to implement your estate wishes.
Taking these few extra steps can maximize your gift’s benefit to both you and the recipient.
Federal AGIs between $75,000 and $99,000 of couples over age 65 begin to lose this age-based special treatment and lose the tax savings they had at lower income levels.
On Tuesday, January 8, 2019, David John Marotta appeared on Radio 1070 WINA’s Schilling Show to discuss financial resolutions for the 2019 new year.
Punishing people for inflation is neither fair nor good economic policy.
On Tuesday, November 13, 2018, David John Marotta appeared on Radio 1070 WINA’s Schilling Show to discuss several tax saving ideas you can do before the year ends.
These are two simple but effective strategies to help calculate a very good conversion target for this year.
Although they are cheaper, the robo-investing accounts are not beneficial to everyone.
These are complex formulas, but they are valuable calculations that show that there is an expected increase of return which will justify selling even a highly appreciated asset.