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BUSINESS
February 11, 1999
Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15. Five years ago, I received stock options from my company that I can now exercise. When I exercise these options, are they considered a long-term capital gain or are they considered regular income and taxed accordingly? Assuming the options were granted by the employer under a "qualified" incentive stock option plan, income would not be recognized until the stock received on exercising the option is sold.
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BUSINESS
By CHUCK JAFFE | June 10, 2008
Now that the race for the White House has been narrowed to two primary candidates, it's time to consider the election from the standpoint of a fund investor, trying to decide which candidate is best for the portfolio. It's not that fund investors should vote with their wallet rather than their conscience, but rather that anyone undecided and not concerned about party lines might want to factor in how the election could hit home financially. It's also very early to analyze the situation, as neither candidate has come out with so much economic and tax policy information to make everything clear.
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BUSINESS
April 8, 1995
Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.Q: I would like to know about imputed interest on deposits on retirement homes where the deposit is returned. How much are you allowed to deposit at the retirement home before you run into imputed interest?A: The IRS uses imputed interest when there is no stated interest on a loan or a sale with deferred payments. In the case of a deposit at a retirement home, the retirement home would either pay interest on, or not offer interest on the deposit.
BUSINESS
By Jay Hancock and Jay Hancock,Sun Columnist | July 15, 2007
Venture capitalists are our best hope for a cancer cure, energy independence and a solution to global warming. Without venture capitalists there might be no personal computers, no overnight mail delivery, no genetically engineered drugs, no Web browsers. Venture capitalists raise incomes, tax revenues and living standards for everybody by financing technology and economic efficiency. But if they think this entitles them to continue paying income tax at rates otherwise available only to people below the poverty line, they are delusional, arrogant or both.
BUSINESS
By New York Times News Service | August 9, 1993
The new tax measure passed by Congress last week has good news for some real estate investors, but many other investors will find bad news in it. The value of some municipal and corporate bonds may go down, but not nearly as much as if the bill had been passed a few years ago. And investing in bankrupt companies will become even more hazardous than it was before.The most important real estate change affects investors actively involved in managing a property. They will be permitted to deduct losses from the property against ordinary income.
BUSINESS
September 12, 2004
Along with the rewards of an income stream for life, a lifetime fixed immediate annuity carries the penalty of taxation until death. Some account holders pay quarterly or yearly taxes on every penny they receive from an annuity. Others pay taxes on just a portion of each payment. How payments from lifetime fixed immediate annuities are taxed depends on a number of factors, such as the age of the annuitant, the size of the original investment in the annuity and the means by which the account was funded.
BUSINESS
By CHUCK JAFFE | June 10, 2008
Now that the race for the White House has been narrowed to two primary candidates, it's time to consider the election from the standpoint of a fund investor, trying to decide which candidate is best for the portfolio. It's not that fund investors should vote with their wallet rather than their conscience, but rather that anyone undecided and not concerned about party lines might want to factor in how the election could hit home financially. It's also very early to analyze the situation, as neither candidate has come out with so much economic and tax policy information to make everything clear.
BUSINESS
By EILEEN AMBROSE | June 8, 2003
TRUE, the new tax law doesn't kill the levy on dividend income as some had hoped, but investors still have plenty to cheer about. The law reduces the tax rates on capital gains and dividend income, and accelerates cuts in ordinary income tax brackets. "It's huge. Any time you increase the after-tax return on investments, that has to help the value of the underlying investments," said Chuck Carlson, chief executive of Horizon Investment Services in Indiana. "In some respects, this may be better than if they totally eliminated taxes on all dividends," he said.
BUSINESS
By JULIUS WESTHEIMER | September 20, 2000
"Small-cap stocks can turn from laggards into leapers," says David L. Babson & Co., investment advisers. "Reasons: strong earnings growth, low P/E ratios, possibility of buyout and dwindling concern over interest rate hikes." It suggests BJ's Wholesale Club Inc., Cable Design Technology Corp., Penton Media Inc. and True North Communications Inc., all on the New York Stock Exchange. TAX TIP: "The best time to sell stock for tax purposes is in the fourth quarter, when you can estimate capital gains and losses," says Roger Lusby, CPA. "Look for stocks with losses to offset estimated gains and ordinary income - up to $3,000 in any one year.
BUSINESS
By Jay Hancock and Jay Hancock,Sun Columnist | July 15, 2007
Venture capitalists are our best hope for a cancer cure, energy independence and a solution to global warming. Without venture capitalists there might be no personal computers, no overnight mail delivery, no genetically engineered drugs, no Web browsers. Venture capitalists raise incomes, tax revenues and living standards for everybody by financing technology and economic efficiency. But if they think this entitles them to continue paying income tax at rates otherwise available only to people below the poverty line, they are delusional, arrogant or both.
BUSINESS
By Humberto Cruz and Humberto Cruz,Tribune Media Services | October 22, 2006
I read your article on the elimination of long-term capital-gains taxes for lower-bracket taxpayers from 2008 through 2010. My plan is to make withdrawals from my deductible IRA those three years to take advantage of this law. Do you agree? Sorry, but withdrawals from IRAs do not qualify for this tax break. Such withdrawals are considered ordinary income and not capital gains, even if the account has gains from the sale of securities such as stocks, bonds or mutual funds. The money withdrawn would be taxed at your tax bracket, the same as other ordinary income such as pay from work, plus generally a 10 percent penalty if you are under 59 1/2 . Likewise, withdrawals from other tax-deferred accounts such as 401(k)
BUSINESS
September 12, 2004
Along with the rewards of an income stream for life, a lifetime fixed immediate annuity carries the penalty of taxation until death. Some account holders pay quarterly or yearly taxes on every penny they receive from an annuity. Others pay taxes on just a portion of each payment. How payments from lifetime fixed immediate annuities are taxed depends on a number of factors, such as the age of the annuitant, the size of the original investment in the annuity and the means by which the account was funded.
BUSINESS
By NEW YORK TIMES NEWS SERVICE | July 22, 2004
Microsoft's decision to pay a $32 billion special dividend - by far the largest payout in corporate history - will create an opportunity for millions of American shareholders to receive income that will be taxed at low rates. But it is also likely to provide an incentive for foreign investors to sell the stock and could create tax-oriented trading in the company's shares. By acting now, Microsoft is ensuring that high-income shareholders, a group that includes Bill Gates, its chairman and co-founder, will receive the $3-a-share dividend before a possible change in the tax laws that could more than double their tax bills on such a payout.
BUSINESS
By EILEEN AMBROSE | June 8, 2003
TRUE, the new tax law doesn't kill the levy on dividend income as some had hoped, but investors still have plenty to cheer about. The law reduces the tax rates on capital gains and dividend income, and accelerates cuts in ordinary income tax brackets. "It's huge. Any time you increase the after-tax return on investments, that has to help the value of the underlying investments," said Chuck Carlson, chief executive of Horizon Investment Services in Indiana. "In some respects, this may be better than if they totally eliminated taxes on all dividends," he said.
BUSINESS
By CHARLES JAFFE | February 11, 2001
Annual tax paperwork has awakened many investors to the idea that it isn't always how much a fund makes that matters most. The real issue is how much you get to keep. In the near future, funds will tell you how much their investors earned and kept, the result of a new rule that forces funds to show how tax-efficient their performance has been. Beginning in April, the Securities and Exchange Commission is requiring funds to include after-tax return data in prospectuses. The after-tax return chart could forever alter the way many investors examine and pick mutual funds.
BUSINESS
By JULIUS WESTHEIMER | September 20, 2000
"Small-cap stocks can turn from laggards into leapers," says David L. Babson & Co., investment advisers. "Reasons: strong earnings growth, low P/E ratios, possibility of buyout and dwindling concern over interest rate hikes." It suggests BJ's Wholesale Club Inc., Cable Design Technology Corp., Penton Media Inc. and True North Communications Inc., all on the New York Stock Exchange. TAX TIP: "The best time to sell stock for tax purposes is in the fourth quarter, when you can estimate capital gains and losses," says Roger Lusby, CPA. "Look for stocks with losses to offset estimated gains and ordinary income - up to $3,000 in any one year.
BUSINESS
By Humberto Cruz and Humberto Cruz,Tribune Media Services | October 22, 2006
I read your article on the elimination of long-term capital-gains taxes for lower-bracket taxpayers from 2008 through 2010. My plan is to make withdrawals from my deductible IRA those three years to take advantage of this law. Do you agree? Sorry, but withdrawals from IRAs do not qualify for this tax break. Such withdrawals are considered ordinary income and not capital gains, even if the account has gains from the sale of securities such as stocks, bonds or mutual funds. The money withdrawn would be taxed at your tax bracket, the same as other ordinary income such as pay from work, plus generally a 10 percent penalty if you are under 59 1/2 . Likewise, withdrawals from other tax-deferred accounts such as 401(k)
BUSINESS
February 11, 1999
Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15. Five years ago, I received stock options from my company that I can now exercise. When I exercise these options, are they considered a long-term capital gain or are they considered regular income and taxed accordingly? Assuming the options were granted by the employer under a "qualified" incentive stock option plan, income would not be recognized until the stock received on exercising the option is sold.
BUSINESS
By Julius Westheimer | December 11, 1998
HERE ARE some suggestions for making and saving money:After Jan. 1, 2000, is your money safe at your bank? "Yes," says Kiplinger's Advisor, "but that doesn't mean quick access to your cash. Over 500 small banks, thrifts and other financial institutions lag in fixing computers to recognize Year 2000. If you're not sure your bank will be ready, consider switching to a larger bank which invested more resources to correct the problem."Also, carefully study your bank, brokerage, credit union and credit-card statements starting around mid-year 1999 and the first months of 2000.
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