Thread: Get those rotten maters ready

Originally Posted by ronbo

I thought that the capitol gains tax would be paid in place of Federal and then throw in the state. So if what you say is right - We would have to pay 20% fed tax, 15% capitol gains, + state?

Hmmmmm. I was under the impression Capital Gains tax was the Federal tax. I was talking to my dad who is retired and heavily invested, and he told me I would have to just pay capital gains (15%) and then state tax. Anyone out there know for sure?

Originally Posted by apwerner

Hmmmmm. I was under the impression Capital Gains tax was the Federal tax. I was talking to my dad who is retired and heavily invested, and he told me I would have to just pay capital gains (15%) and then state tax. Anyone out there know for sure?

Capital Gains tax is the federal tax on gains on investments. As far as which tax we will have to pay that is the 20% difference question. I am under the impression that I will be paying LTCG however I will be consulting several Tax Attorneys before I make any payments.

Until this hits noone really seems to know.

So you will be paying either LTCG or STCG plus state tax, local tax(if applic.) and the spread at the bank.

apwerner :--- Federal tax is the tax on WAGES:
that is deducted every pay check ( how many dependents etc. ).
In 2008, 2009, and 2010, the tax rate on eligible dividends and capital gains is 0% for those in the 10% and 15% income tax brackets. In 2011 these reduced tax rates will revert back to the rates in effect before 2003, which were generally 20%. THESE STATEMENTS ARE DEPENDENT ON WHAT THE
NEW CONGRESS WILL DO. For a capital gains tax calculator try
www.moneychimp.com/features/capgains.htm
again the long term capital gains tax currently varies between 5 % in the
10--15 tax bracket. -----15 % in the 25--28--33--35 tax brackets.
long term OVER 366 days
short term UNDER 366 days this tax could be up to 35%
these rates excluding city and state tax
currency profits are discussed in IRS Pub 525 page 30
for the record i am NOT a cpa or attorney
Good luck ---- hope to see you all in the Caymans

Originally Posted by apwerner

Hmmmmm. I was under the impression Capital Gains tax was the Federal tax. I was talking to my dad who is retired and heavily invested, and he told me I would have to just pay capital gains (15%) and then state tax. Anyone out there know for sure?

That's what I was thinking.

So the best advice for us all is the follow Khan's advice of consulting several tax attorneys in YOUR area to see what you will actually have to pay out once this hits.

a small caveat: a tax attorney is for settling tax debts and problems
with the IRS. What will be needed for this investment is a CPA to at least
consult with for a better explanation with more depth than any posting
here can. Personally i think a ruling from the IRS will be issued after
the R / V to define the rules.

Originally Posted by bigred52

a small caveat: a tax attorney is for settling tax debts and problems
with the IRS. What will be needed for this investment is a CPA to at least
consult with for a better explanation with more depth than any posting
here can. Personally i think a ruling from the IRS will be issued after
the R / V to define the rules.

Actually, a CPA can also be a Tax Attorney. I am seeking a (1) pkg deal so I know I will be fully covered.

Originally Posted by Countrygirl70

Actually, a CPA can also be a Tax Attorney. I am seeking a (1) pkg deal so I know I will be fully covered.

Just use whoever Bill or Warren uses. No problem.

Originally Posted by bigred52

apwerner :--- Federal tax is the tax on WAGES:
that is deducted every pay check ( how many dependents etc. ).
In 2008, 2009, and 2010, the tax rate on eligible dividends and capital gains is 0% for those in the 10% and 15% income tax brackets. In 2011 these reduced tax rates will revert back to the rates in effect before 2003, which were generally 20%. THESE STATEMENTS ARE DEPENDENT ON WHAT THE
NEW CONGRESS WILL DO. For a capital gains tax calculator try
www.moneychimp.com/features/capgains.htm
again the long term capital gains tax currently varies between 5 % in the
10--15 tax bracket. -----15 % in the 25--28--33--35 tax brackets.
long term OVER 366 days
short term UNDER 366 days this tax could be up to 35%
these rates excluding city and state tax
currency profits are discussed in IRS Pub 525 page 30
for the record i am NOT a cpa or attorney
Good luck ---- hope to see you all in the Caymans

Bigred, thank you for this information. Gosh, it's a little more complicated than I thought. I know some good CPAs that I'm going to get to help me thru this, so all will be well. Once again, thanks and good luck to you too.

What is a CPA? I understand it's some kind of financial advicer - but what does the abbreviation stand for?
/K
Ps. BTW, how do you FIND one?!? I mean, you can hardly look them up in the yellow pages and be sure it's a good one...And I don't have that kind of friends (= rich friends) that use one either so can't get recommendation... (and no point in you recommending one either - I live in Sweden!;) )