1.
d) Capital gains from the sale of shares
2.
I don’t think there’ll be any capital gains involved, but I’ll check with one of our taxation experts
3.
Thus: As of 2010, the richest one per cent of Americans paid forty per cent of all capital gains and income taxes
4.
These taxes include, however are not limited to, consumer taxes, school and property taxes, ―sin‖ taxes, egregious taxes on inheritance or the ―death tax‖ and capital gains taxes whose earnings are taxed twice, no less
5.
Capital gains tax rates are frozen for 2 more years…you can assume they wil run with
6.
Capital gains tax rates are frozen for 2 more years
7.
long-term capital gains and topping out at 15% through December 31, 2012
8.
extension, capital gains were slated to rise to a high of 20% – something that may now occur in
9.
The rest of the governmental mechanism is funded by other taxation such as VAT, capital gains tax, excise duty, etc
10.
718 capital gains (totaling over 5T)
11.
Capital gains of $1
12.
2T of interest, and/or capital gains and/or rents and/or dividends on our 43T+3
13.
The principal of the nations financial wealth remains intact and produces most of the “other income” interest, rents, capital gains, etc
14.
In Chapter 2 we estimated the distribution of capital gains in lump sums for the
15.
Government through reduction and eventual abolishment of the estate tax will be recouped by capital gains taxes that your heirs will have to pay if and when they dispose of the property bequeathed to them
16.
Prior to 2001, heirs automatically received a “full basis step-up” to fair market value on inherited property and did not have to pay capital gains tax when they sold the property
17.
The son or daughter sells the land for $200,000 in 2006 and has to pay capital gains tax on $140,000, or the difference between what you paid for it at the time of purchase and the fair market value at the time it was sold
18.
increasing the flow of earnings toward shareholders - mostly through capital gains
19.
to pay capital gains taxes on that amount because it is considered
20.
However, IF the money is “withdrawn,” then all the gains within the policy (the amount earned in addition to the total premiums paid) will be taxed as income and not as capital gains
21.
Let’s say you sold your business, paid all the capital gains taxes on the proceeds of the sale, and are now left with a cool million dollars
22.
Portfolio Income: Money made through capital gains, such as trading stocks, or selling a house that appreciated after you bought it
23.
be treated as income or capital gains depending on the way in which the
24.
strategies, trusts, capital gains and options
25.
six months or more and the profit was subject to the long-term capital gains tax
26.
There would also be a tax on capital gains for stock sales
27.
A 20% tax will be imposed on all capital gains from stock trading on the Athens stock exchange
28.
Later, he receives capital gains after the reinvests it somewhere, thus the person does not have to pay for capital gains taxes
29.
The active contrarian strategies described in this chapter will subject the investor to capital gains taxes when employed in a taxable investment account
30.
Mutual funds must distribute capital gains to their shareholders on a yearly basis (i
31.
By comparison, investors in ETFs generally only realize capital gains when they sell shares
32.
This gives them a bit more control over when they realize capital gains and have to pay taxes on them
33.
It could be argued earnings compound faster since no taxes are owed on reinvested dividends and capital gains, but this is a fairly hollow distinction
34.
Thus paying taxes on reinvested dividends and capital gains in a taxable account may make your pocketbook lighter, but it does not generally inhibit the compounding of the investments themselves
35.
You cannot use unearned income such as interest, dividends, capital gains, rental property income, pensions, or social security benefits
36.
One may focus on capital gains, where the purpose is price appreciation, whereas another may specialize in income investing by buying assets, such as bonds, that generate an income stream
37.
Over the years, the tax savings will have a huge impact, because at some point you will hit Capital Gains Tax (CGT) and that hurts your returns badly
38.
Shareholders may then find it hard to calculate the cost of the holding for capital gains tax when they sell
39.
The choice is then cluttered with other considerations such as whether one wants those shares, whether the valuation of the buyer’s equity is fair or realistic, and whether selling might crystallize an unwelcome capital gains tax liability
40.
It is galling that the government takes another slice on dividends and capital gains after it has already charged additional tax on investing taxed income
41.
Many of the companies that state their primary aim is for capital gains concentrate on the purchase of the so-called “growth stocks,” and they often have the word “growth” in their name
42.
Its emphasis was, of course, on capital gains
43.
Short-term capital gains and losses are merged to obtain net short-term capital gain or loss
44.
Long-term capital gains and losses are merged to determine your net long-term capital gain or loss
45.
If there is a net long-term capital gain, it is taxed at the favorable capital gains rate, generally 20%—which will fall to 18% for investments purchased after December 31, 2000, and held for more than five years
46.
When we view this long-range experience in perspective we find another set of paradoxes in the investor’s changing attitude toward capital gains as contrasted with income
47.
It seems a truism to say that the old-time common-stock investor was not much interested in capital gains
48.
We assume here a top tax bracket for the typical investor of 40% applicable to dividends and 20% applicable to capital gains
49.
He must also be capable of curbing any tendencies toward greed in his investment: He cannot attempt to buy precisely at the bottom of the market or to maximize capital gains over short periods
50.
Normal fees might range from 1 percent of assets under management (AUM) to 2 percent of AUM plus 20 percent of annual realized or unrealized capital gains (after a bogey of, say, 6 percent paid or accrued to limited partners)
51.
Shareholders receive on a tax-free basis new stock that, if they desire to do so, they can convert to cash by selling the shares received, and they would be taxed at only capital gains rates rather than at dividend income rates
52.
In the usual case, such receipts of cash are taxed only on a capital gains basis
53.
For example, back in the early 1970s, Baker Fentress, a registered closed end investment trust, was selling at around 44; its unencumbered asset value, easily measurable, was not less than $63 per share; and even after allowing for capital gains taxes and liquidation expenses, minimum net asset value would be well in excess of $50 per share
54.
The ability to pool Reliance would give Leasco a reservoir of future earnings that it might be able to call upon and that, after 25 percent capital gains taxes, would still be in excess of $7 per share
55.
The $9 in particular was taxable at capital gains rates
56.
The Leasco-type guaranty is something commonly used in private transactions, in part because it results in capital gains treatment for the buyers’ profit and an off-balance sheet liability for the issuer of the guaranty
57.
These options enabled the holder to profit on a tax-sheltered capital gains basis from appreciation in the market value of Corporation’s stock
58.
The Schaefer family, through these transactions, obtained by July 15, 1969, some $86 million in cash on a tax-sheltered (capital gains rather than dividend income) basis, after which they were still left in control of the company
59.
Because of low turnover (buying and selling of stocks within the ETF), most ETFs do not have large capital gains that are paid out to investors at the end of the year, known as phantom income
60.
Mutual funds, on the other hand, are synonymous with paying out year-end capital gains even if a mutual fund was down on the year
61.
Many investors were shocked in 2008 to receive large capital gains payouts on their losing mutual funds
62.
52 in capital gains and $1
63.
There were a number of ETFs that had similar years to the Dodge and Cox fund, losing nearly 50 percent, but as far as tax efficiency, the majority did not pay any capital gains to investors
64.
2 An example is the iShares MSCI EAFE Index ETF (NYSE: EFA), a very similar investment, which also paid no capital gains for the calendar year 2008
65.
ETFs are able to eliminate capital gains by using in kind redemptions when they decide to sell a position within the allocation
66.
Justin trades his real-life E*Trade account hyperactively, and he admits that he gets killed paying short-term capital gains taxes on profits
67.
With the more recent availability of weekly options on certain stocks, you could write an option at-the-money each week to lock in your return, or one strike out so you would keep all the capital gains between the starting price and the Call’s strike price, and then just write a new one over and over each week
68.
Optionz Traderz: Married Puts are used for a short term hedge on a long term position, sometimes to avoid the tax consequences of short term capital gains
69.
The aim of this strategy is to realize long-term capital gains with a minimum of portfolio turnover
70.
1%) added almost 3 percentage points of annual capital gains to the yield income
71.
If markets undergo significant valuation changes, realized average returns are strongly influenced by unexpected capital gains and losses even over long sample periods
72.
We can try to recover past average expected returns by adjusting realized returns for the estimated impact of repricing (unexpected capital gains or losses)
73.
(over a 4 or 5-year horizon), the rate forecast implied by the yield curve proves broadly correct: • For example, when the YC is steep, bond yields are more likely to fall than rise in the near term, thus augmenting any carry advantage with capital gains
74.
However, survey expectations do not support this interpretation but, instead, indicate that investors overestimate future bond yield rises near cyclical troughs and earn unforeseen capital gains thanks to this forecast error
75.
However, average returns can be contaminated by capital gains or losses from sample-specific spread trends—and excess returns are estimated with some noise
76.
Later it became apparent that the strong fiscal position had been partly cyclical and partly related to the equity market bubble (because capital gains tax revenues were much higher than expected)
77.
Rationally optimistic views on emerging markets can still be based on a view of ever narrower spreads for the asset class (with capital gains augmenting the carry advantage) or of countries systematically going through the emerging markets “rite of passage” and gradually upgrading from frontier markets into developed markets with narrower spreads
78.
Often, the carry advantage was even augmented by capital gains from short-term appreciation of the higher yielding currency! Thus, the UIP hypothesis failed empirically in an even more dramatic and consistent way than its close cousin—the “pure expectations hypothesis”—did in interest rate markets [2]
79.
There was no offset (UIP would have predicted that all columns should have a height of zero; the carry advantage is just offset by FX depreciation) but also no augmenting (which would have added more capital gains to high-yield portfolios than to low-yield portfolios)
80.
Thus momentum and underreaction effects are related to the difference between current price and the price at which most investors’ bought (“capital gains overhang”)
81.
This cost may be offset by capital gains if “something happens” and the option ends in the money, and the option buyer can pocket the difference between the market price and strike price, minus the purchase price of the option:• If investors buy only calls or puts, directional exposure is typically more important than volatility exposure
82.
If the yield curve is upward sloping and remains unchanged, bonds earn capital gains simply by aging and rolling down the yield curve
83.
YTM clearly captures the yield income (carry) component, and the yield spread between two bonds may also predict capital gains if the spread is mean-reverting
84.
In the assumed absence of risk premia, yield differentials across the curve only reflect market expectations of future yield changes (so that expected capital gains or losses exactly offset the impact of initial yield differences) [1]
85.
The distinction between carry as running yield income and capital gains as price changes in (22
86.
Thus for bonds it is often reasonable to use yield to maturity for carry and “duration times yield decline” for capital gains
87.
If an upward-sloping yield curve remains unchanged over the next year, a long-term bond’s yield income advantage over the one-year bond will be augmented by capital gains through a “rolldown” effect
88.
Since consequent capital gains augment any rolling yield advantage that long bonds have, the PFs exceed 1
89.
In a risk-neutral environment, any asset with an income advantage should have lower expected capital gains (growth) so that total expected returns are equalized across assets
90.
• The income tax rate is often higher than the capital gains tax rate
91.
Even at the same tax rate, capital gains are a more attractive source of revenue than income because they allow greater tax flexibility
92.
Investors can defer realizing gains and paying capital gains taxes, while harvesting capital losses that may offset other taxable income
93.
First, because of their higher turnover, actively managed funds have higher distributions of capital gains, which are taxed at your capital gains rate at both the federal and state level
94.
An index fund allows your capital gains to grow largely undisturbed until you sell
95.
But as we’ve demonstrated above, this outperformance does not persist, and most small investors using active fund managers tend to turn over their mutual funds for this reason once every several years, generating more unnecessary capital gains and resultant taxes
96.
Even worse, they generate high capital gains distributions proportionate to their turnover, since the primary reason for selling a stock is a large price increase, resulting in that stock’s “graduating” out of the index
97.
For the taxable investor, this stuff is totally irrelevant—whatever advantage there is to this technique is obliterated by the capital gains capture from buying and selling with the high frequency necessitated by momentum techniques
98.
Worse, stocks usually move out of a small-cap index, and thus need to be sold, after a large price appreciation places them into the mid- or large-cap category, generating disproportionately large amounts of capital gains
99.
Again, unwanted capital gains distributions are the result
100.
SPDRS do not generate appreciable capital gains and are thus slightly more tax-efficient than conventional S&P index funds as well