The taxpayer gave shares of the corporation to her son and two grandchildren in 1991, 1992 and 1993: In valuing the stock for gift tax purposes, she reduced the FMV by the full capital gains tax
she would have incurred in the event of corporate liquidation, or a sale or distribution of the building, even though, at the time of the gifts, the corporation had no such plans.
Despite moves to reduce the current capital gains tax
rate from as high as 40% to a flat rate of just 18%, many second home owners could still end up paying more tax, according to accountants Pricewaterhouse Coopers.
From April the tax relief which allowed small business owners to sell up and pay 10% CGT on the profit will be abolished: instead there will be a flat rate of capital gains tax
The idea of eliminating capital gains tax
on stock donations has been ,on the table for many years and is enthusiastically endorsed by fund raisers and financial planning consultants.
You can find capital gains tax
calculators on the Internet at http://homegain.
The Tax Court had assumed a willing buyer would operate the timber property as a going concern, accepting the low earnings and paying the capital gains tax
over a period of years.
What Rubin means is that if you've been holding onto stocks because you didn't want to pay the current capital gains tax
on them, you'll be tempted to sell when the tax is reduced.
Mr Brown said: 'To remove more of the old barriers to new investment, I have decided on radical reforms of capital gains tax
- beyond the tax cuts I set out in the Pre-Budget Report.
McKeon said the last tax cut passed by Congress helped spur the nation's economic recovery, giving people more money to spend by paring the capital gains tax
from 28 percent to 20 percent and creating a new tax credit for people with children.
Thus, under a dynamic model, lower taxes will raise asset values, increase the pool of unrealized capital gains, and, ultimately, increase the amount of capital gains tax
Mature women are looking for predictability and conservative benefits and the structured sale has great capital gains tax
deferral benefits while providing guaranteed payments and lump-sum distributions to the seller.
Items on the agenda will be subject to discussion at municipal levels from April, when the MOF will put forth report on capital gains tax
as the basis for discussion.