This form of tax efficient investing offers an opportunity to save
big on capital gains taxes.
Not exact matches
Berkshire is likely sitting
on more than $ 10 billion in
capital gains from the Wells Fargoinvestment, and could owe
big taxes on gains it realizes, analysts said.
In effect, you're paying 22 %
on the
gain under the AMT and 15 %
on the
gain under the regular income
tax, so a
big capital gain can lead to a
big AMT bill.
One of the
big problems with trying to build in
taxes is that they can be so complicated
on investments: some can be deferred, some can't, and there are different
tax rates for different investment income types (interest, dividends,
capital gains).
By selling NBD now I decrease the
tax burden
on the portfolio for the 2008 year and take a
big chunk of the
capital gains generated out of the hands of government.
The
tax rates differ significantly between ordinary income and
capital gains and can have a
big impact
on after
tax returns.