Investing Capital Gains Feed

Getting a tax refund can feel like it's raining money. (Photo by Eugene Lisyuk) You filed your taxes, and now are awaiting a refund. The Internal Revenue Service's data shows the average it had issued as of April 5 was $3,011. That three grand average is a nice chunk of change. Even a smaller amount is welcome. So, what are you going to do with that money? Everyone's personal, financial, and yes, tax, needs are different. But here are some suggestions for all y'all getting a refund. 1. Open or add to a savings account or emergency fund. I know,... Read more →


Federal tax returns get most of the attention during the annual tax season. That's because Uncle Sam's individual income tax laws apply across the country. But state taxes also are demanded of most Americans. And in most of the 43 states and District of Columbia that tax some type of individual earnings, April 15 also is the due date. No individual income tax states: The only states with no personal income tax at all are Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming. Tax savvy readers probably noticed that the Evergreen State is not on that list. That's because... Read more →


President Joe Biden has targeted capital gains tax laws in his fiscal year 2025 budget. But don't freak out if you have some money in the markets. For the most part, Biden's looking to get more from really wealthy market mavens who typically pay lower capital gains tax rates on the long-term assets they sell. Collecting billionaires' unrealized capital gains: When you sell an asset for more than your paid for it, that profit is a capital gain. The tax rate for these gains typically is less than ordinary tax rates that apply to earnings like wages. In most cases,... Read more →


The Internal Revenue Service has made it clear for years. It wants to know about your digital assets. Ignore the crypto question, now at the top of more tax forms, at your own tax peril. And if you go further and don't report taxable digital transactions, the Department of Justice (DoJ) will get involved. That's the case for a Texas man, who this week was indicted on charges of filing false tax returns and structuring cash deposits to avoid currency transaction reporting requirements. Bitcoin was a component in both charges. Notably, the federal prosecution involving digital transactions is historic, at... Read more →


Photo by Art Rachen on Unsplash IRS offers guidance on how to answer the tax return digital asset question On Jan. 11, the first day of trading after the Securities and Exchange Commission approved exchange-traded funds (ETFs) tied to bitcoin, companies offering such products saw $4.6 billion in transactions. The investors who were first to board the bitcoin ETF train will have to deal with the associated tax route next filing season. This year, however, the Internal Revenue Service is reminding taxpayers that, in most cases, they need to report their cryptocurrency transactions and, where applicable, pay any income tax... Read more →


You're ready to file your tax return, but there's one problem. You don't have all the statements you need to complete your Form 1040 and associated schedules. Many of us, however, are just going to have to be patient for a couple more weeks. While some issuers have sent taxpayers the required statements, many don't get them out until close to, in most cases, the mandated Jan. 31 delivery date. The documents typically are snail mailed, but technology is gaining ground. Issuers of most of my annual tax statements now let me know by email the documents are ready. Then... Read more →


Even if you're not a cat, you can appreciate Boxing Day as a way to help others by making charitable donations. Happy Boxing Day! This holiday isn't formally celebrated in the United States, but many people around the world embrace the day after Christmas as a way to keep the season of giving going a bit longer. There are many explanations as to how Boxing Day, and its name, came to be. One commonly accepted origin story is that when it began in the United Kingdom during the Victorian period, household servants were given the day after Christmas off as... Read more →


To ensure you have the type of retirement you want, you must do some calculations, including figuring how your required minimum distributions fit in, financially and tax-wise. (Photo via Unsplash+ in collaboration with Getty Images) Retirement savings can make a big difference in how enjoyable your post-work years will be. If you have tax-deferred retirement accounts, those savings also present new tax responsibilities once you reach a certain age. Some money in a traditional IRA that's been out of the Internal Revenue Service's reach for years must be taken out as a required minimum distribution, or RMD. Uncle Sam also... Read more →


On Tuesday, Dec. 5, the Supreme Court of the United States (SCOTUS) heard oral arguments in the tax case Moore v. United States. Charles and Kathleen Moore filed the lawsuit challenging the Mandatory Repatriation Tax provision in the Tax Cuts and Jobs Act (TCJA) of 2017. That section of the tax reform law was designed to discourage U.S. corporations from keeping funds overseas by reducing certain taxes on foreign earnings. But in exchange In exchange for those tax cuts, investors and corporations had to pay a one-time, retroactive tax on all foreign income dating back to 1986. The repatriation provision,... Read more →


Unsplash+ in collaboration with Charlie Harris Financial gifts arrive this month for many mutual fund investors. Most funds make annual distributions in December, based on their results at the October end of their fiscal year. The money paid to fund owners also presents the Internal Revenue Service with a present. The distributions are taxable. The fund owner owes tax on the amounts regardless of whether the money is reinvested or paid directly to the investor. Such distributions typically are only a small portion of a fund's returns. However, sometimes the December amounts are big enough to pose a serious tax... Read more →


Plus, a look at how a higher cost of living affects gifts before you go, youngsters' investment earnings, and more. Photo by Lance Reis on Unsplash What we would do with our wealth may differ, but most of us want to be rich. And even if the Internal Revenue Service is successful in its recently announced effort to crack down on higher income tax evaders, having money is always preferable. In fact, if you've got beaucoup cash, you don't really have to try to slip one past Uncle Sam. Many of the current wealth-related provisions in the Internal Revenue Code... Read more →


Getting your tax ducks in a row takes on a different meaning, and bird, in November. But whatever fowl you choose for the metaphor, make some time this month to complete tasks that will prevent tax turkeys. (Photo by Mohan Nannapaneni) Hello, November! We welcome cooler (but not cold!) temperatures, holiday feasts (yes, I love pumpkin pie), and seeing family and friends for the first time in, well, months. This penultimate month of the year is also a good time to tackle some tax tasks. I know, you already have a lot on your November to-do list. But check out... Read more →


These cattle chilling out in the West Texas Big Bend area don't appear worried about much. Their owners, however, have a lot of concerns, including the extremely dry conditions that could hurt the profitability of their agricultural endeavors. The IRS is offering some ranchers and farmers special drought-related tax relief. (Photo by Kay Bell) The recent burst of inflation was driven in part by industries trying to recoup some of their pandemic losses. Then the drought arrived, and things got worse. Weather wreaks havoc in many economic sectors, but particularly in food production. And since most of us regularly shop... Read more →


Senate side of the U.S. Capitol. (Photo by Scrumshus - Own work, Public Domain) The Internal Revenue Service's to-do list is pretty packed right now. It just announced that it is implementing paperless tax protocols next year. But a group of U.S. senators say it needs to make fighting crypto tax evasion a priority. They are concerned about the Treasury Department's and IRS' apparent procrastination in complying with the Infrastructure Investment and Jobs Act's (IIJA) mandate of new tax regulations for crypto asset traders. The IIJA-ordered rules would require third parties, such as Coinbase, to report information about individuals' crypto... Read more →


Four U.S. senators with usually divergent policy points of view have agreed that there needs to be stricter control of digital asset trading. When Sen. Elizabeth Warren (D-Massachusetts) introduced her Digital Asset Anti-Money Laundering Act last year (S. 5267), the lone cosponsor was Kansas Republican Sen. Roger Marshall. The latest version of the bill (S. 2669) has added cosponsors Sen. Joe Manchin, the West Virginia Democrat who's often bucks his party's leaders, and Sen. Lindsey Graham (R-South Carolina), now a Donald J. Trump supporter. Four lawmakers isn't many, but the group's agreement shows that Congress is starting to consider tighter... Read more →


Photo by Alesia Kozik Cryptocurrencies have changed not only individuals' views of assets and wealth development, but also countries' tax systems. Those are among the issues explored in a just-released International Monetary Fund (IMF) paper. As for the tax challenges, the IMF paper notes that the capital gains tax revenue at stake worldwide, either because it's not imposed or not collected, may reach well into the tens of billions of dollars. But the more profound risks, say the paper's authors, may ultimately be for value added tax (VAT) and sales taxes. The paper also cites research monitoring crypto transactions. These... Read more →


Photo by Art Rachen on Unsplash News has not been good of late for crypto fans. The Securities and Exchange Commission last night (June 5, 2023) filed an emergency motion in federal court asking a judge to freeze assets in Binance's two U.S. holding companies. The SEC contends that the world’s largest cryptocurrency exchange mishandled funds and lied to regulators. The SEC followed that today by suing Coinbase, alleging that the largest crypto exchange in the United States violated rules that require it to register as an exchange and be overseen by the federal agency. Now, two Democratic congressmen are... Read more →


After legislative and court fights, Washington State's capital gains tax took effect on Jan. 1, 2022. The Evergreen State's 7 percent tax applies to the sale of stocks, bonds, and other financial assets exceeding $250,000. And its collection, with the tax's first payments due this past April, has been a boon for the state's treasury. Initial estimates predicted the capital gains tax might provide Washington State around $248 million in this fiscal year, which ends on July 1. The actual amount the state has collected as of May 9 was more than three times that: $849 million. Education boost: Washington... Read more →


U.S. crypto fans are not happy with the White House proposal to institute a 30 percent crypto mining tax. They are not alone. European Union (EU) members have agreed to crack down on crypto tax evasion by having member states share digital holdings data. The Directive on Administrative Cooperation (DAC8) introduced last December is a crypto-tax framework that would increase surveillance of crypto exchanges, marketplaces, and other crypto-related services. This latest EU crypto effort aims to increase tax transparency in crypto assets and to combat tax evasion and avoidance. Approval of DAC8 which could generate additional tax revenue of around... Read more →


Meanwhile, even crypto-mining-friendly Texas is exploring ways to limit such operations' heavy use of the Lone Star State's power grid. Austin Technology Council Texas is known for many things. Now, two of them, cryptocurrency mining and hot summers, are colliding. The Lone Star State has become a major hub for bitcoin miners. Many operations set up shop here because of the state has vast spaces needed for the operations. Then there's Texas' mostly independent power grid, which has few connections to the rest of the country. This has allowed Texas to avoid federal oversight. And don't forget Texas' demand response... Read more →