Sentences with phrase «at the ordinary income rate rather»

Not exact matches

Carried interest, which is a fund manager's profit, is taxed at the capital gains rate, rather than the higher rate on ordinary income.

The NUA tax strategy allows certain clients whose qualified retirement plans contain these appreciated employer securities to eventually pay taxes on the appreciated value of those securities at the lower long - term capital gains tax rate, rather than at the ordinary income tax rate that would otherwise apply to retirement plan distributions.

And when the stock is eventually sold, it will be eligible for capital gain tax treatment rather than being taxed at [higher] ordinary income tax rates.»

Stock dividends, by contrast, will be taxed at the capital gains rate rather than as ordinary income.

These investments will tend to generate a lot of ordinary income or short - term capital gains, so they would usually be taxed at income tax rates, rather than at the lower long - term capital gains rate.

6 Qualified dividends are ordinary dividends that meet specific criteria to be taxed at the lower long - term capital gains tax rate rather than at the higher tax rate for an individual's ordinary income.

For example, under the U.S. tax code, gains from investments held longer than one year are taxed at the capital gains rate rather than as ordinary income.

For example, gains realized on stocks held for less than a year are taxed at ordinary income tax rates — which max out at 39.6 % — rather than at the long - term capital gains rate of 15 % to 20 % for most people.

However, since ordinary income is taxed at a higher rate than long - term capital gains, you will potentially pay more tax on the IRA withdrawal, since it will be taxed at the higher rate, if your gains are long - term rather than short term.