The Capital Gains Blog

Archive for the ‘Long Term Capital Gains Taxes’ Category

Question: If Cap.gain tax treatment is as a trader, can I still get tax exemption out my long term mutual funds gain?

For traders I.T. is payable at normal applicable rates and there is no tax exemption from capital gain out of sale of equity shares for long term. But, will the benefit be available for mutual funds units sale held for long term (one year)?

Answer: Tax on short term capital gains from the sales of shares where you paid security transaction tax is 10% 10% (for AY 2008-09) and 15% (for AY 2009-10) while there is no tax on Long Term Capital Gains. In such cases if you hold shares for more than a year, you have a long term capital gain.

Read about Capital gains, computation of capital gains and income tax rates on capital gains: http://mytaxes.in/index.php?topic=30.0.

For all the available Exemptions from Capital Gains under Sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA, read: http://mytaxes.in/index.php?topic=31.0.

Penn West Announces Its Results for the Fourth Quarter Ended December 31, 2009

CALGARY, ALBERTA–(Marketwire – 02/18/10) – PENN WEST ENERGY TRUST (TSX: PWT.UN – News ) (NYSE: PWE – News ) is pleased to announce its results for the fourth quarter ended December 31, 2009 Operations – Production for 2009 averaged 177,221 (1) boe per day exceeding our guidance of 171,500 to 176,500 boe per day (net of property dispositions of approximately 3,500 boe per day annualized …

There are two ways to get financial returns over the real estate property, first one is in the form of rents and another one is in the form of capital gain on the sale of property, in a particular time frame. The rental could be generated from the residential home whether you are living or not. You can also rent out the spare rooms of your house where you are currently living. It is difficult to find out the reliable and friendly tenants. So, it is usually a better option to buy a separate property, which is used only for generating a rental income.

Property investing is a very tough job in the sense that sometime only expert can be successful in this field. There are various benefits of buying an investment property such as its value rises in the long term, relatively a safe form of investment as compare to the risk worthy investment like stocks, you can be eligible to get tax deductions in the form of depreciation on the value of investment due to obsolescence, you can enhance your cash flows as well by obtaining variations in the tax, in the form of rental income. When the interest on the loan of your property investors becomes higher than the rental income earned from same property then it called negative gearing and this situation can help you to reduce the tax return. According to the survey, the investment in the real estate sector would be the best option to get high returns other than investing in gold, shares & stocks, bank deposits or debts.

After all discussing above benefits, it would be a smart way to take an advice from the qualified experts in this field such as quantity surveyors, real estate brokers, financers and in some case accountants. This makes possible to maximize the benefits you going to receive from your investment property.

http://investmentpropertyx.co.uk/

Leader Short Term Bond Fund (LCCMX) Declares Capital Gain Distribution

PORTLAND, Ore.—-The Leader Short Term Bond Fund announced a short term capital gain distribution of $0.10 per share on December 28th, 2009 to shareholders.

Avoiding Capital Gains Tax

Question: What is the tax rate for Long Term Capital Gains? And the tax rate for short term?

I have a few investments over a year old, and want to know how much taxes I’ll have to pay if I close out of these investments. I also want to know how much I’ll have to pay on a few short term. Please let me know the tax percentages. If this matters, I’m based in New York. Please include references.

Answer: The following is for Federal tax purposes only. I do not have a good grasp of NY State or NY City income tax law.

When a security (stock, mutual fund, bonds, etc.) is sold, the gain is considered long-term capital gain (LTCG) if it was held more than one year or short-term capital gain (STCG) if it was held for one year or less. Of course, you could also have a long-term Capital Loss (LTCL) or a short-term capital loss (STCL) if you sell for less than your investment or “basis”.

At the end of the year, you add all your gains and losses together. You will end up with one of the following situations:

1) If you have a net loss, you write it off against your other income up to $3000. So, if you made $50,000 on your W-2 and had a $2000 LTCG and a $7000 STCL, your total capital loss is $5,000 (+$2000-$7000). Of that, $3,000 will go against your regular income of $50,000 to give you an new income of $47,000. The remaining $2,000 loss will carry into next year and be combined with your next year’s capital gains/losses.

2) If you have a net gain composing of STCG and LTCL, the net gain (being short-term) is just like ordinary income and is taxed at your marginal tax rate. It is taxed just as if it were additional income in box 1 of your W-2.

3) If you have a net gain composing of LTCG and STCL, the net gain (being long-term) is taxed at 15% if your marginal tax rate is in the 25% bracket or higher, or it is taxed at 5% if your marginal tax rate is below the 25% bracket.

4) If you have both a LTCG and STCG, the STCG portion is taxed at your marginal rate (just like #2) and your LTCG portion is taxed at 15% or 5% (just like #3).

This is not a guess….I know for sure. Hope this helps

Monsanto Delivers on Q1 Guidance, Confirms Full-Year Earnings Per Share and Cash Flow Targets

Monsanto Company has delivered on its financial targets for the first quarter of 2010, which ended Nov. 30, 2009, and recommitted to its full-year guidance. Â With its quarterly earnings results today the company also announced its annual research and development pipeline update, showcasing a record-breaking 11 phase advancements.

Robin Hood or Robbing Hood? – Obama’s Neighborliness – Take from the Rich, Give to the Poor

Question: Wash sale for capital gains when paired with Capital Loss?

Hi:

I understand that the IRS Wash Sale rule applies to capital losses only, not to capital gains. That is, there are no tax consequences if I buy back a stock that I just sold at a gain; I pay Capital Gains Tax as usual.

However, I am not clear on this scenario:

1. I sell stock A for a capital loss of $1000,
2. On the same day, I sell stock B at a capital gain of $1000,
3. Now, my $1000 loss and $1000 gain cancel each other, and I don’t have any tax liability for the year on these transaction. Right?
4. I believe that stock B is a long term holder. So I buy it back.

The question is, does this still allow me to use my $1000 loss on stock A to cancel my $1000 gain on stock B?

Answer: The wash sale rule only applies to substantially equal securities (like the same exact stock, ETF, mutual fund, etc.). It does not apply to different stocks. So immediately buying back stock B after a gain on B has nothing to do with when you sold stock A at a loss, other than the gain on B offset by the loss on A on different lines of your Schedule D at the end of the year..

‘Game of Life’ hits too close to home

Rite Aid Pharmacy is now promising to pay off the mortgages of two lucky customers, and is giving away 10 “Mega-Kitchen Makeovers” and six Infiniti convertible sports…

6/24/09: White House Press Briefing

Question: what is the current applicable rate of Long Term Capital Gains tax on securities and mutual funds in india?

Answer: Short term capital asset:

* Shares and equity linked mutual fund units: If held for less than 12 months; Tax rate=15%

* Any other security or unit of the UTI or Mutual Fund (Non equity based), if held for less than 12 months. The capital gains income will be added to other income and taxed as per slab rates.

Long term capital gains:
* Shares and equity linked mutual fund units: if held for more than 12 months, the tax rate is NIL (Tax free).

* Any other security or unit of the UTI or Mutual Fund (Non equity based), if held for more than 12 months: The tax is @10% flat rate on gains. (Or you can pay @20% flat rate using inflation index. But paying 10% is cheaper).

Democrats Ride Into Sunset, Your Wallet in Hand: Kevin Hassett

Jan. 4 (Bloomberg) — The U.S. enters 2010 the way many bad movies end, by riding into the sunset. Back in the early days of George W. Bush’s administration, opponents of his tax cuts were as helpless as Republicans have been during the health-care debate.

Alex Jones – Jerome Corsi at the DNC Pt2