1(g)(3), if a child's unearned income included net capital gains
and/or qualified dividends, it was allocated between the parent and the child (because, under Sec.
Lower Tax Rates on Long-Term Capital Gains
and Qualified Dividends
Because of the jump in real estate prices, I've realized a nice return on my investment and I'm worried about paying huge capital gains
Generally, clients would be advised to invest for capital gains
to take advantage of the deferral and preferential rates.
Buyers are out there in the marketplace, and they're ready to take advantage of low, mortgage interest rates and the new capital gains
tax reforms, as well as the new tax advantages for first-time home buyers.
Longtime homeowners who sell their houses could net a tidy profit thanks to modified capital gains
regulations proposed in the new federal tax bill.
Why, you might ask, do supply-siders focus on cutting taxes on the wealthiest Americans, through reductions in capital gains
taxes and in the marginal tax rate for the top income bracket?
Director, Division of Taxation,(2) held that capital gains
from stock sales may constitutionally be apportioned where the stated purpose for the stock acquisitions and divestitures was to expand existing operations and enter new businesses.
To the extent that the aggregate amount distributed by the Fund based on a fixed percentage of its net asset value exceeds its current and accumulated earnings and profits, the amount of that excess would constitute a return of capital or net realized capital gains
for tax purposes.
However, the court was concerned about taking an "approach that could potentially convert all capital gains
into ordinary income [or] one that could convert all ordinary income into capital gains
" For example, a stock's value is the present discounted value of the company's future profits.
Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, long-term capital gains
Since individuals (including S corporation shareholders) prefer capital gains
to ordinary income--as do corporations with capital losses--the character issue may be significant.