The Capital Gains Blog

Posts Tagged ‘itemizing_deductions’

Question: If an asset loses all basis, due to bankruptcy will the owner take an ordinary or Capital Loss?

life insurance policy-insurance company goes bankrupt?
Small business equity-business goes bankrupt?
savings account-bank goes bankrupt amount exceeds FDIC insurance?
Pension plan goes bankrupt?
Mutual fund goes bankrupt?

Thanks

Answer: life insurance loss–no
small business loss- NOL
savings account exceeding FDIC-no
pension plan-no
mutual fund-capital loss

Ares Capital Corporation Declares First Quarter Dividend of $0.35 Per Share and Announces December 31, 2009 Financial …

NEW YORK—-Ares Capital Corporation announced that its Board of Directors has declared a first quarter dividend of $0.35 per share, payable on March 31, 2010 to stockholders of record as of March 15, 2010.

Davos Annual Meeting 2010 – Rethinking Market Capitalism

Question: How are the fees for a mutual fund paid? Are they removed from your dividends and capital gains?

I’m not talking about loads, just the fees that comprise the expense ratio.
If i have a fund with 1% fees, will I be billed for these fees directly and then pay by check, or are they taken out of the dividends and capital gains before they are distributed, or are they actually part of the NAV calculation?
How can it come out of account balances? They aren’t going to force you to sell shares just so you can cover their fees are they?

Answer: Management fees are factored daily into the NAV or Net Asset Value of your fund. The NAV is the price per share to buy or to sell a mutual fund. If there were no fees, for example, the NAV would a bit higher that it is and simply reflect the actual value of the stocks in the portfolio. But because ALL mutual funds have fees the NAV is always a bit lower. The difference between the NAV and the actual value of the portfolio is the profit for the fund company. The average difference between the NAV and the actual portfolio in most funds range between .5% to around 1.5%

If there is a load in your fund you do not buy at the NAV but at the Maximum Offering Price (MOP) Which is the NAV plus the sales charge. When you sell a load fund you will sell it at the NAV.

Please read my profile. If you would like to chat about this or anything else please send me an email. Great question by the way!

Northern Lights Fund Trust Announces Distributions

NEW YORK, NY–(Marketwire – January 20, 2010) – The Board of Trustees of Northern Lights Fund Trust, a multi-series registered investment company (the “Trust”), declared dividends from net investment income and/or Capital Gains Distributions indicated below for the year ended December 31, 2009, with respect to each series of the Trust, payable on the “Payable Date” to shareholders of record at …

BEST Forex Day Trading – Choosing What to Trade

Question: Why did I have to pay mutual fund Capital Gains Tax?

The capital gains were $5400. I did not sell any shares during 2007 and my total balance was approx. $1000 less at the end of the year than at the beginning.

Answer: When you own a mutual fund, you pay tax each year on your share of the total items they sold. YOU might not have sold anything, but THEY did.

It does not imply that you sold any shares, or even that your value went up for the year.

You’ll also pay tax on your share of the dividends they received.

Keep track of what you paid tax on – you’ll add that to your basis when you sell the shares.

Party Favors

A behind-the-scenes army fights for control of Virginia’s money and influence. How Richmond’s powerful lobbying industry plays the system.

Question: Sub: Income tax laws India?

If I have have an taxable income of Rs 990000 for the FY and my Short terms capital gains (from sale of mutual funds) is Rs. 11000 /-
Will have to calculate tax after adding the amount of Rs 11000 /-
In other words do I pay surcharge for income over 10 lakhs.
the general understanding is we pay 10% applicable for STCG MFs sale (separately) and balance Income tax is calculated as per the reckoner for the other income of Rs.9.9 lakhs
would request the answer be substantiated with link of relevant act.
In case surcharge is to be paid how does the stcg tax of 10 % apply

Answer: During AY:2004-05 the surcharge was for more than 8 lakhs. (Now it is for more than10 lakhs). The Deputy Commissioner of Income Tax has passed an assessment order like below.

0,90,160 Taxable income as per slab rates (Narmal Income)
7,57,555 Spe. Rate of tax (@20% on property L.T Cap. Gains)
———–
8,47,715 Total Income:
=======
1,59,542 Tax @ narmal rate and special rate
0,15,954 Surcharge @10% (Added by the department)
———–
1,75,496 Total tax pyable as per department and the tax was paid.
=======

From the above practical example, your short term capital gains also will be added and the total will become 10,01,000 and you have to pay surcharge on total tax like above.

Niko Reports Results for the Year Ended March 31, 2010

CALGARY, ALBERTA–(Marketwire – June 24, 2010) – Niko Resources Ltd. (“Niko” or “the Company”) (TSX:NKO) is pleased to report its financial and operating results, including consolidated financial statements and notes thereto, as well as its managements’ discussion and analysis, for the fiscal year ended March 31, 2010 (“fiscal 2010″). The operating results are effective June 23, 2010. P

Entrust Arizona self directed IRA video