Capital gains tax

The American Tax Code: How Our Government Subsidizes the Wealthy Tax deductions, credits, special rates and homeowner deductions will allow the richest 20 percent of Americans to receive more than half of the $900 billion in tax benefits in 2013 (CBO). America does not treat all sources of earnings equally. Currently, the American tax code’s approach to income tax progressivity is focused on economic models in which labor is the only source of income. Since the upper class often accumulates large

amount of the gain realized on the sale of the investment may exceed the investment’s cost basis in terms of the actual dollars received, although a large portion of the gain being realized may be due to inflation as opposed to a true increase in the value of the investment (Jones & Sommerfeld, 1995). Indexing the tax basis of all assets to reflect changes in the value of a dollar has been examined as a solution to the problem. Indexing involves increasing the cost basis of a capital asset to account

Under the Income Tax Assessment Act 1997, discount capital gains need to satisfy requirements from sections 115-10, 115-15, 115-20 and 115-25. 1 Covenants are placed on the entities eligible for discount capital gains. These entities include individual taxpayers, life insurance firms, superannuation and trust funds. 2 All discount capital gains events must have occurred after 11:45 am inclusive as of the 21st September 1999. 3 Indexation methods are not used when calculating the cost base of discount

Laurence Smith- Home Sale Gain Exclusion Take Advantage of the Home Sale Gain Exclusion If you sold your home last year, Laurence Smith and his associates at Book 2 Tax want you to take advantage of the Home Sale Gain Exclusion. Their knowledgeable staff of accountants and Tax Preparers understand the rules related to this tax event, and can work to get you the largest refund possible. Filing an income tax return can be complicated, especially if you are found to have made money on the sale of

Under the tax law, certain tax benefits can significantly reduce a taxpayer’s regular tax amount. The alternative minimum tax (AMT) applies to taxpayers with high income by setting a limit on those benefits. It helps to ensure that those taxpayers pay at least a minimum amount of tax. The AMT is the excess of the tentative minimum tax over the regular tax. Therefore, the AMT is owed only if the tentative minimum tax is greater than the regular tax. The tentative minimum tax is figured separately

1) Recommended Tax Filing Status Spouse A has varying sources of income and given the characteristics of his personal and professional life, he can claim a number of deductions. Owing to the fact that Spouse A and Spouse B have varying sources of income, Spouse A would most ideally file the IRS 1040 form jointly with his wife’s tax returns. This is because a joint tax return would give them access to a host of deductions for which they are eligible. These include earned income tax credits, American

supply side economics wasn’t a new idea for the American tax code. During the early 1920s, income tax rates were cut multiple times which averaged to a total of most rates being cut by a little less than half. The Mellon Tax Cuts named after Treasury Secretary Andrew Mellon under Presidents Warren Harding and Calvin Coolidge. He believed that changes in income tax rates causes individuals to change their behavior and practices. As taxes rise, tax payers attempt to reduce taxable income by either working

Milligan’s proposal Tax Policy for a New Era: Promoting Economic Growth and Fairness, a dual income tax system has been introduced that would boost economic growth and increase tax fairness. The new system contains a single, low rate on all capital income, coupled with a higher top tax bracket on wages. This essay, however, will focus on analyzing Miligan 's arguments in reforming the tax system. In this report, Milligan mentions two trends that raise concerns for current Canadian tax system. The first

Tax planning can make a significant difference to your financial situation. The following strategies will help you to manage capital gains tax (CGT) in Australia and cut income tax for the current financial year. 1. Use capital losses to cut Capital Gains Tax With global equity markets still well below their 2007 peaks, you may have some unrealized capital losses within your portfolio. Although you may not expect these investments to recover in the foreseeable future, and they may no longer suit

In the Finance Act, 2014, the Government of India granted various tax exemptions to such REITs, showing a clear intention of making these entities a notified one, even before SEBI regulations were notified. It granted a status of tax pass-through entity to these trust. This was also reflected in The Union Budget of 2014 to make REITs tax-efficient for domestic and foreign investors. The tax pass-through status refers to the fact that the returns from investments made in these investment vehicles