FOR IMMEDIATE RELEASE
New Law Tax Strategies
This
year’s tax law changes have created new ways to shift family income if you
have children. An example would be
to gift your children stock that you want to sell in order to take advantage of
their tax rate. Á
A way to make Country Club Dues deductible
If
your company pays the dues for you; and then treats the payments as
compensation, the company recognizes a 100 percent deductible expense.
Green Fees and the cost of meals at the club can still be written off if
the entertainment precedes a ‘bona fide’ business discussion. Á
Is Mutual Fund Investing Wise?
Mutual
Fund investments are taxed at two levels You – When you sell your shares in
the Mutual Fund (unless your mutual fund is in a ROTH IRA) and The Mutual Fund
itself realizes taxable investments everytime a stock is sold within the fund.
This is passed down to you before the dividends are distributed.
The
new tax law changed the rules for capital gains, Short term gains
(held less than a year) are taxed at the ordinary rates up to 39.6%. Midterm
gains
(12-18 months) are taxed at the top
rate of 28% and the mutual fund itself. Long Term gains (18 months plus)
are taxed at the rate of only 20% - 10% if you are in the 15% tax bracket.
Invest
the time to manage you own shareholdings to minimize capital gains tax due on
them. Please keep these calculations in mind when you are investing. It may look
like you are making money; but that is not determined until your tax return is
done. Most of the time it ends up
costing the investor.Á
How does the Government spend your tax dollar?
Visit
the site http://www.ibo.nyc.ny.us.
After you enter the amount of income taxes and payroll taxes you paid in
1999,
you will instantly get a breakdown of how much you contributed to specific
federal government programs last year – everything from Social Security to
space flight.
Tax Shelter for QSBC.
If you own stock in a closely
held C corporation that meets certain qualifications, you can exclude up to 50
percent of capital gains tax.
¨The shares must have been issued before August 10, 1993 and
held for more than five years before you sell.
¨The corporations must issue the shares to you.
¨The corporation cannot be a personal services
business. It also cannot have more than $50 million in assets.Á
For More Information Contact:
All Around Financial Service
Taking you to the next Level
Tel: 714-777-3184
FAX: 714-779-8211
Internet: info@allaroundfinancial.com
