Sentences with phrase «discounts on capital gains tax»

Not exact matches

In addition, you may be subject to tax on amounts recognized in connection with the sale of municipal bonds, including capital gains and «market discount» taxed at ordinary income rates.

You may also be subject to tax on amounts recognized in connection with the sale of municipal bonds, including capital gains and «market discount» taxed at ordinary income rates.

One thing to note is that there may be a long term capital gains tax on the profits you make from your zero coupon municipal bond depending on what price you bought it compared the the original issue discount price.

In summary, there may be capital gains tax payable on the sale of the home, despite the discounted price, Johanna.

The state tax exemption for interest on in - state bonds will not necessarily extend to capital gain resulting from the sale or disposition of such bonds (or ordinary income resulting from the application of the market discount rules).

Thus, a holder who recognizes capital gain (or ordinary income resulting from market discount) may be required to pay state tax on such capital gain and should consult a tax advisor with respect to the state tax consequences of such a sale.

Meanwhile the holder of the discount bond would be fully taxed on just 2 % in interest, and then taxed on only half the 1 % capital gain.

These sheets calculate the (annual) figures for: • Accrued interest that needs to be returned to the seller after settlement • Net bond basis • Original discount or premium • Annual (pro-rated) amortization of bond premium using both Constant Yield and Straight Line amortization, as required by the IRS • End - of - year basis • Annual coupons • Estimates of taxes due on coupons • Estimates of differences in taxes paid vs. not amortizing premiums • Capital loss or gain upon sale before maturity

The efficient market is hard at work transferring the RHG's shares from those on high tax rates who prefer discounted capital gains (such as myself and John Kinghorn) to those who value the franking credits (mostly super funds in pension mode).

From that perspective, distortions are generated by the 50 % discount on capital gains income for income tax purposes, not negative gearing.