The Capital Gains Blog

Archive for the ‘Capital Gains Income’ Category

Question: IF I am not filing a Schedule A (taking std deduc), can I file Form 4952 to offset int. income w/ margin int.?

Example:
Margin Interest Expense: $5,000
Interest Income: $100
Short-term capital gains: none
Taking Standard Deduction: $10,500 (thus, no Schedule A)

Answer: Investment expenses may be taken as a deduction up to the amount of investment income, not including interest income. Since your income is interest income, you cannot take the investment expense deduction.

If you had investment income to use with the investment expense, it would have to go on Schedule A. It cannot be taken outside of Schedule A (or Schedule E for royalty related investment).

If your Schedule A deductions are far less than the standard deduction, you will lose the investment expense deduction entirely. If your Schedule A deductions are close to the standard deduction, you may choose to use Schedule A even though you get a smaller deduction this year, but you will be able to carry your investment expense forward to the next year and possibly use it at that time.

Tennessee Commerce Bancorp Reports Net Income of $1.3 Million for Fourth Quarter

FRANKLIN, Tenn.—-Tennessee Commerce Bancorp, Inc. today reported financial results for the fourth quarter ended December 31, 2009. The Company reported net income available to common shareholders of $1.3 million, or $0.27 per diluted share, for the fourth quarter of 2009.

Top Secret Magic Code: New Breakthrough Makes Your Site Money

Question: If I Grant an Easement for a period of 50 yrs. can the money be taxed as Capital Gains versus ordinary income?

I have owned this property for over 20 yrs and the easement would cover approximately 2.75 acres of a 10 acre tract.

Answer: if you grant an easement for this long you’d take any compensation as income for the agreed upon years. each year if so specified. but i would never grant one for so long because it will be a matter of court decision to recind the granted easement route after so long.

go for the year-to-year or 2-year lease option with stipulations on the use, maintaining costs, conditions of other possible acesses, and your own future plans. renegotiations of the agreement and terms of use and payments, pending of course.

what i’m saying is that 50 years is a long time to lock yourself out of something that you might not be able to get back at the end of anyway. especially if it is with family members…

Corus Entertainment announces fiscal 2010 first quarter results

Consolidated segment profit increases 2% in the first quarter

Question: Simple Trust: Are dividends and capital gains taxed as ordinary income?

I am filling out form 1041 for a simple trust (which only contains 3 mutual funds).

This year, there were approximately $1500 in dividends and $4500 in capital gains.

Using the form, it looks like everything is being taxed as ordinary income (vs. 15% max capital gains rate).

Is this correct?

Also, if the trust were to be dissolved and mutual funds transferred to person who trust was set up for (without selling any mutual funds), would the IRS still view this as a sale and repurchase and expect taxes based on those “sales” next year?

Answer: Michael, I had the same question with respect to form 1040, and the answer is beyond Schedule D. The IRS downloadable forms now download the form separately from the instructions. You are correct, Schedule D gives no indication of what you should do with the numbers you calculate. I am not a tax professional, but I went to the last page of the Schedule D instructions http://www.irs.gov/pub/irs-pdf/i1040sd.pdf and found the Schedule D tax worksheet. This is where it starts to break down your ordinary income from dividends and Capital Gains And Losses. It may or may not be applicable to form 1041 that you are filling out, but there will probably be another worksheet that you can use. I, like you, saw that the form 1040 was simply calculating the sum of ordinary income as well as dividends and capital gains. By the time you finish the worksheet, I believe you will then see how they are being calculated differently and where you should put those numbers.

Creating the Tax-Efficient Frontier: In Rising Tax Environment Advisors Can Use Tax-Deferral to Improve the Efficient …

NEW YORK & LOUISVILLE, Ky.—-Tax deferral can improve the performance of tax-inefficient investments by as much as 100 bps, without any subsequent increase in risk, simply by locating assets between tax-deferred and taxable vehicles based on their tax-efficiency, according to a new white paper released by Jefferson National.

Question: Why Would Ordinary People Support the Bush/McCain Tax Plans That Allow Corporate Exectutives To Pay 15% Tax?

when a guy driving a UPS truck pays 37%?
Corporate suits and hedge fund managers can report their income as capital gains and pay only a 15% tax. A hard working beer truck driver making $45,000 pays 37%.
Why do so many working class americans support this insane tax structure that the republicans offer? Were they dropped on their heads as children or have mothers who drank and used crack while pregnant with them?

Answer: these are the reasons people ARE voting for Obama, they just don’t have a clue whats going on…

yes, im talking about you….and anyone else that believes what you just posted.

Aberdeen Global Income Fund, Inc. Announces Payment of Monthly Distribution

Aberdeen Global Income Fund, Inc. , a closed-end bond fund, today announced that it paid on January 15, 2010, a monthly distribution of US 7.0 cents per share to all shareholders of record as of December 31, 2009. Â

Pending home sales fall 16 percent in Nov.

The number of people preparing to buy a home in November fell sharply in the latest sign that the housing market, which had been rebounding strongly, may be headed for a “double-dip” downturn over the winter.

Obama secret Pharma 3 6 trillion dollar deal