Investing Capital Gains Feed

The tax dueling has officially begun. The Senate on Thursday, Nov. 9, released its answer to the House's H.R. 1, officially title the Tax Cuts and Jobs Act. UPDATE, Thursday, Nov. 16, 2017: The House passed H.R. 1. Prospects for the Senate's tax reform bill, however, are muddier. While resolving difference in the two doesn't demand quite as many steps as in the 10 Duel Commandments outlined in the still incredibly popular Broadway (and touring company) musical Hamilton, it's still going to be one of the biggest face-offs in recent Washington, D.C., legislative history. Here's a look at some of... Read more →


House Speaker Paul Ryan (R-Wisconsin) get serious in discussing what Republicans say are the middle-class benefits in their latest proposal to rewrite the tax code. The most detailed plan yet was released Thursday, Nov. 2. (Screenshot of C-SPAN video; click image to watch clip.) Remember that Capitol Hill adage that all politics is local? It can be easily shifted to tax reform. Whether you're for or against a tax law change will depend in large part on how much it helps or hurt you. When it comes to the men and women who propose and/or make those changes, their votes... Read more →


UPDATE, Nov. 2: Good news. It looks like most of the Republican tax reform plan, according to the bill's legislative language, "shall apply to taxable years beginning after December 31, 2017." That means we will close out 2017 under current tax law, so these tips still apply. I'm working on a post about the proposed tax changes and will get it up here on the ol' blog shortly. it's now published! My mind boggles at the number of Thanksgiving pumpkin pies that can be made from this collection! It's just a small part of the Dallas Arboretum and Botanical Garden's... Read more →


Welcome to Part 6 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes to estate, gift and kiddie taxes. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 tax returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 tax returns due next April. Real wealthy families like the fictional filthy rich Darlings of ABC's "Dirty Sexy Money" welcome the latest estate tax inflation adjustments. (Cast photo courtesy ABC... Read more →


Does the surging stock market mean it's time to take capital gains? Tax reform could complicate the decision. The U.S. stock market passed another notable boundary today, moving above the 22,000 mark. It didn’t stay there long, bouncing around a bit before, yes, finally closing at 22,031. UPDATE, Oct. 18, 2017, 10 a.m.: It's still happening. The U.S. market hit 23,000 for the first time on Oct. 17, 2017, before closing just below that historic mark. Today, major indexes hit intraday records and the Dow industrials returned above 23,000 as the latest round of corporate earnings continued to support the... Read more →


It's officially summer. Time for fun at the beach. And fun making mid-year tax moves. Happy July 5th, the start of midyear tax planning. With six months left in the tax year, it's the perfect time to make some tax moves that could reduce your 2017 tax bill. Here are six easy ones to take care of in July. 1. Adjust your payroll withholding. Did you get a big tax refund this year? Or did you owe Uncle Sam more than you expected? Either situation means that you need to reassess your payroll withholding. It's easy to do. Just give... Read more →


The Financial Choice Act is a third of the way to becoming law. Want to take a guess as to what it might do? It obviously deals with money. But it's about giving more choices to financial institutions, not to consumers. The Financial Choice Act essentially seeks to roll back much of the Dodd-Frank Act, one of President Barack Obama's signature accomplishments. The current law, enacted in 2010 and whose full, official Dodd-Frank Wall Street Reform and Consumer Protection Act moniker comes from its former U.S. Senate champions Chris Dodd of Connecticut and Barney Frank of Massachusetts, was created to... Read more →


How do I celebrate each May 5th? With guacamole, cerveza y tax tips! That means here in our Texas casa, every day basically is Cinco de Mayo. Yes, there really is a tax component to Cinco de Mayo beyond the use of my poco Español as a framework for this list. That's why I feel justified in urging you — before you lift a glass, be it brimming with Dos XX or a margarita, to commemorate Mexico's victory over French troops at the Battle of Puebla on this day in 1862 — to check out these five tax-smart tax moves.... Read more →


Most high-income investors last were likely a little bummed last week when the Republican proposal to replace the Affordable Care Act failed. It didn't have anything to do with their personal opinions on Obamacare or health care in general. It meant that the Net Investment Income Tax, or NIIT, remains on the books. This 3.8 percent surtax is assessed on capital gains, dividends, interest, and other passive income earned by single investors making more than $200,000 a year or $250,000 if married filing jointly. It was one of the many ACA-related taxes that would have been repealed if the GOP... Read more →


Time is rapidly running out to make year-end tax moves, but if you're a septuagenarian, here's one that you definitely cannot afford to overlook. If you're 70½ or older, congrats and happy, happy on all those full and half birthdays! Remember, though, that now you must take out at least an IRS-specified amount from your tax-deferred retirement account(s) by the end of the year. Miss the deadline and you'll owe a major tax penalty. (Birthday party photo courtesy Today's Senior Network) Half birthday tax trigger: If you're 70½ and have a traditional IRA (or more than one of these accounts)... Read more →


The Dow is again flirting with the 20,000 mark. It closed today at 19,974.62. The run-up has finally prompted you to evaluate your portfolio to make some year-end rebalancing and, of course, tax moves. Good for you. But don't undermine that effort by making these tax mistakes. 1. Buying a tax bill: Timing is everything, especially when it comes to investments. If you buy a mutual fund just before it issues capital gains distributions, you've also bought yourself a tax bill. Worse, Morningstar's Christine Benz points out, by adding a holding to your taxable account before it makes a payout,... Read more →


Do you live in Lafayette, Tennessee? Or maybe you know someone who lives in this town of about 5,000 just 60 miles or so northeast of Nashville. Or perhaps you know someone who just happened to pass through there and purchased a Powerball lottery ticket. Don't get too excited if you had 32 and 16 on your Powerball ticket. This Giphy image is from an earlier drawing, not the almost $421 million jackpot won by a Tennessee ticket buyer this weekend. That lucky person bought THE Powerball lottery ticket, which last night (Saturday, Nov. 26) matched all six of the... Read more →


Today is National Philanthropy Day, created to recognize those who strive to make life better for others. The term philanthropist usually conjures up rich people holding fancy galas attended by their wealthy friends to raise money for various causes. But you don't have to be rich to be a philanthropist, or a good-deed-doer as The Wizard of Oz called such folk when he stumbled over the fancier moniker. "Back where I come from there are men who do nothing all day but good deeds. They are called phil … er … phil … er … er … good-deed-doers and their... Read more →


Every presidential year, some of the folks whose candidate didn't make it to the White House swear they're moving to another country. Maybe some of them got a head start this year. U.S. passports have blue covers. Thousands of Americans, however, have become expatriates this year, giving up their U.S. documents, perhaps for a United Kingdom passport like the one shown above. The Internal Revenue Service reported 1,380 expatriations in the third quarter of 2016. That just missed the record of 1,426 Americans who decided to renounce their U.S. citizenship during the same period last year. That's a huge increase... Read more →


It's November. You know what that means. Yes, the presidential election will be over next week. But November also means that we have two months to make some tax moves to ensure we don't encounter any tax turkeys. Don't be gobbled up by tax concerns. Make these November tax moves. (South Park/Comedy Central turkeys via GIPHY) Health care considerations: November kicked off with open season for Affordable Care Act, aka Obamacare, enrollment. If you don't get medical insurance at work, you should check out the Health Care Marketplace for coverage. You'll need minimal essential coverage or you'll owe a tax... Read more →


Welcome to Part 6 of the ol' blog's series on 2017 inflation adjustments. You can find links to all 2017 inflation posts in the series' first item: Income Tax Brackets and Rates. Today we look at changes to estate and gift tax amounts, as well as limits on investment income for children, known as the kiddie tax. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. There's a time for play and a time for generational tax planning.... Read more →


Personal note, Saturday, June 10, 2017: Batman has always been my favorite comic book superhero. While I love the Caped Crusader's dark history and how it is reflected in his crime-fighting style, when I was a kid Batman was pure fun thanks to the character's TV portrayal by actor Adam West. On this sad day that I learned of Mr. West's passing on June 9, I realize that Batman came with me from those joyful childhood "Bam" and "Ka-Pow" graphic days of diversion into my mostly more serious adult tax world. Thanks for always being there when I needed you,... Read more →


The winning Powerball ticket last night, July 30, was sold in New Hampshire. If the person who bought it is indeed a resident of the Granite State and not just a visitor passing through, he or she also is very tax lucky. A single New Hampshire lottery ticket had the winning numbers of 11, 17, 21, 23, and 32, with the Powerball of 5. New Hampshire only taxes dividend and interest income, so the state won't get any immediate cut of the winner's jackpot of $330.6 million as a lump sum or, if the winner chooses 30 annual annuity payments,... Read more →


The Fourth of July is over, but if your neighborhood is anything like mine, you'll be hearing fireworks for another week or so. Yes, my neighbors are pyrotechnic scofflaws. Even if you don't participate in the literal lighting of firecrackers or bottle rockets post-July-4, there are still plenty of metaphorical tax fireworks that you can take advantage of as we head into the heart of summer. Here are five easy tax moves to consider in July. 1. Get storm ready. We've had four named tropical systems so far this Atlantic/Gulf of Mexico hurricane season. So far, thank goodness, there's been... Read more →


Happy New Year! No, I haven't hit a time warp, although that could be cool! But I digress. Today is the start of the Year of the Monkey. Although 2016 is the Year of the Monkey, Chinese New Year parades still tend to be led by dragons. The Lunar New Year that began today is the biggest holiday in China. Thanks to the large communities of Chinese heritage throughout the world --- and because folks will jump at any chance to party -- it's a festive time worldwide. Although China officially operates on the international Gregorian calendar, the traditional lunisolar... Read more →