Capital Gains taxes

Hello,

I get a lot of questions pretaining to trusts, llc and corps, if your looking to minimize your tax burdens, you need to know where the least capital gains taxes are paid. In my opinion it is NV, but there are several other states as well. NM may keep your names private but has the highest in Cap Gains. Federal taxes you may never escape unless you had a non-profit foundation more than 1 year old before cashing in. See the below link. AJ

http://www.thereibrain.com/realestate-blog/2007/10/capital-gains-tax-rates-state-by-state/

i have a corporation. Should I deposit the money into that account? I will check with my Accountant before I make a move. "Happy Thanksgiving".

Gains on Corporations lead to double taxation when dividends are paid to shareholders. An "S" Corp or Undesignated LLC has what is called a "pass through taxation" system. It is taxed only once on the members personal tax return, not twice like with a corporation.

The problem is you will not escape federal Cap gains unless you had a less than 15% long term to 35% short term investment, Cap Gains, than your personal income tax last year. You will have an election to do and that will depend upon the above.


http://www.llc.com/benefits_of_llcs.html

LLC Tax Flexibility


Like a sole proprietorship or partnership, an LLC enjoys pass-through taxation. This means that owners (also known as "members") report their share of profits or losses in the company on their individual tax returns. The Internal Revenue Service (IRS) does not assess taxes on the company itself. This avoids the "double taxation" that general, or "C," corporations experience. By filing additional application forms, LLC owners can also elect for the IRS to tax their LLC as a C Corporation or S Corporation.

Here is a pretty good analysis of Federal capital gains taxes.

http://thefinancebuff.com/0-capital-gains-tax-rate-for-2011-and-2012.html

She linked to an analysis of the Senate bill by the Joint Committee on Taxation.

One item of interest to readers of this blog is that the 0% [long term] capital gains tax rate will be extended for two more years, i.e. 2011 and 2012.

How can [long term] capital gains tax rate be 0%? Isn’t it 15%? It’s 15% if you are in 25% federal income tax bracket or above. It’s 0% if you are in the 15% tax bracket or below. For the latter group, the [long term] capital gains tax rate has been zero in 2009 and 2010. Now it’s going to stay at zero for two more years. Sweet!

If you belong to this group, there’s still a limit on how much you can sell and pay zero [long term] capital gains tax. Only those [long term] gains that, when added to your regular income, still put you in the 15% bracket or below are taxed at 0%.

For example, if you are married filing jointly and your taxable income before [long term] capital gains is $40,000, you can generate up to $28,000 worth of [long term] capital gains and not pay any federal capital gains tax, because the top of the 15% federal tax bracket for married filing jointly is $68,000 ($34,000 for single). Note the relevant number is your taxable income, not gross. Taxable income is after all deductions and exemptions.

For a retiree, this is a perfect way to reset the cost basis in one’s taxable account. If you have legacy positions you no longer want but you didn’t want to sell because of [long term] capital gains, you can sell them now and buy what you really want. If you still like the investments, sell and immediately buy back the same positions. No federal [long term] capital gains tax. The tax cost basis will be higher, which means lower [long term] capital gains tax in the future when the rate isn’t zero.

Linda Stern mentioned in her article gifting appreciated stocks (or mutual fund or ETF shares) to elderly parents who are in a low tax bracket eligible for 0% [long term] capital gains tax. When you gift stocks or fund shares, the recipient gets your original cost basis. The elderly parents can sell the shares for a [long term] gain and pay no [long term] capital gains tax. If the parents feel generous, they can make a contribution to your kids’ 529 plan. Just saying …

State income tax can be a spoiler to this nice perk. Most states don’t have a special tax rate for capital gains. If you are in a high-tax state such as Oregon, although federal [long term] capital gains tax is 0%, the state of Oregon will still tax the gains at 9%. But considering it’s normally 9% plus federal [long term] capital gains tax, 9% is still a very good deal.

A reader brought to my attention that it can be more complicated if you receive Social Security benefits. Additional income can make more Social Security benefits taxable. It’s best to estimate the effects of realizing capital gains with a tax calculator. With Intuit’s TaxCaster online tax calculator, I see a couple, both 65 years old, receiving $30,000 in Social Security benefits, can generate $60,000 in long term capital gains and pay less than $500 in federal income tax. What a deal!

I must say our current policies are very friendly to retirees who have more liberty in managing their income. I just hope the policies will stay friendly when I retire.

Reference:
■S.A. 4753 Tax Relief, Unemployment Insurance Reauthorization, And Job Creation Act Of 2010: Summary, Full Text

Pay your taxes,and be thankful that you live in a free country that lets you make money to pay the taxes that your congress representatives give to their special interest friends,"blow" on self-interest projects (solyendra -sic)jerks that won't work,stick it in ytheir pockets,etc!!!!!!!!!!!AIN'T the US a WOONDERFUL COUNTRY?????I LOVE IT!!!!!Would NOT live anywhere else!!!HAPPY THANKSGIVING,EVERYBODY-hope the "big one" hits soon----so we can pay MORE taxes!!!!!

WarEagle says, "Pay your taxes..." Are taxes lawfully and morally due the IRS? If you claim them as "your taxes" with your signed statement to same, they are indeed. However, knowledge is power and can set you free, when applied intelligently, lawfully, peacefully. It's always our choice....

I highly recommend you check the thread here entitled The Whole Truth about the IRS and the Bible in which you’ll receive referenced information extremely valuable to you. My posts there will also lead you to other significant “lawful money” information that can impact our nation as well as yourselves, in manners you may not imagine now.


Many others here also have wisdom in this realm and I’m continually learning and growing from the forum here, for which I’m truly thankful.

Blessings to ALL here this glorious day of Thanksgiving, as we remember the Giver of all good Gifts and praise Him for same!

In His Love, Forgiveness, Peace, Joy, Abundance and so much More… 7freemom




Many others here also have wisdom in this realm and I’m continually learning and growing from the forum here, for which I’m truly thankf

Speaking of Taxes and the Bible I have found these scriptures work for me:

(Matthew 22:17-21) .　.　.Tell us, therefore, What do you think? Is it lawful to pay head tax to Caesar or not?” ¹⁸　But Jesus, knowing their wickedness, said: “Why do YOU put me to the test, hypocrites? ¹⁹　Show me the head tax coin.” They brought him a de·nar'i·us. ²⁰　And he said to them: “Whose image and inscription is this?” ²¹　They said: “Caesar’s.” Then he said to them: “Pay back, therefore, Caesar’s things to Caesar, but God’s things to God.”

Americans do not have a "Caesar" (although to some it may appear we do) and "head tax" is unconstitutional. This verse is specifically and thoroughly covered in The Whole Truth about the IRS and the Bible which may very well have a different meaning than you may now realize. It's worth checking out, for those who have ears to hear and eyes to see, and wish to preserve as much monetary blessing for His purposes as possible, to His Honor and Glory.



By
His Grace, our days are coming!!





Blessings
to All seekers of His Truth and
Abundance, as we walk in
obedience to His principles, to His Honor and Glory…. In Jesus Name… 7freemom

question in the 15 percent group if i understand right after the 68000 ipay 15 percent on the balance i cash in thats taxable is that correct thanks