Sentences with phrase «ordinary income such»

This means that you will pay federal and state tax (if applicable in your state) at the rates that apply to other types of ordinary income such as wages from employment.

Not exact matches

Certainly, candidates receive ordinary income (such as fees for lawyering) that is not subject to those limits.

The stock grants will generally be subject to tax upon vesting as ordinary income equal to the fair market value of the shares at the time of vesting less the amount paid for such shares, if any.

Any gain or loss recognized on such a premature disposition of the ISO shares in excess of the amount treated as ordinary income is treated as long - term or short - term capital gain or loss, depending on how long the shares were held by the participant prior to the sale.

Pursuant to such an election, you would include in each year as ordinary income the excess, if any, of the fair market value of such stock over its adjusted basis at the end of the taxable year.

If a participant disposes of such shares within one year after the date of exercise and two years after the date of grant (the «ISO Holding Period»)(such disposition, a «Disqualifying Disposition»), any gain on such Disqualifying Disposition, up to the amount of the spread on exercise, will be ordinary income, with the balance being capital gain.

Any additional gain or loss recognized on such premature sale of the shares in excess of the amount treated as ordinary income will be characterized as capital gain or loss.

That's much larger than alternatives such as SIMPLE IRAs and ordinary individual retirement accounts, and for high - income individuals, it makes it hard to match what SEP IRAs can allow.

ALLOWABLE PACKAGES: ANY INCOMING PACKAGES MUST BE PURCHASED FROM AND MAILED TO THE FACILITY BY A COMPANY WHOSE ORDINARY BUSINESS INCLUDES THE SALE AND SHIPPING OF SUCH ITEMS.

In ordinary vision, the lens focuses incoming light in such a way that it flips an image upside down and backward.

Qualified dividends, such as most of those paid on corporate stocks, are taxed at long term capital gains rates — which are lower than ordinary income tax rates.

No portion of such inclusions of ordinary earnings would qualify as «qualified dividend income.

Of course, if the other investment alternatives would produce ordinary income, the effect of such ordinary income would also have to be taken into account in the above formula to determine the after - tax yield on both investments.

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).

However, capital gain rates are lower than the tax rates imposed on ordinary income, such as employment wages and interest.

For example, assume married taxpayers with $ 40,000 of ordinary income (such as dividends and interest), $ 12,000 of social security benefits, and $ 10,000 of tax - exempt interest.

The effect of this rule is that a taxpayer who purchases a tax - exempt bond subsequent to its original issuance at a price less than its stated redemption price at maturity (or, if issued with OID, at a price less than its accreted value), either because interest rates have risen or the obligor's credit has declined since the bond was issued, and who thereafter recognizes gain on the disposition of such bond will have part or all of the «gain» treated as ordinary income.

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.

Distributions from qualified retirement accounts, such as IRAs, are taxed as ordinary income regardless of the underlying investments.

Any distributions resulting from such gains will be considered ordinary income for federal income tax purposes.

The higher tax rates described above would affect any investment income treated as ordinary income, such as interest paid by bonds or certificates of deposit.

Such traditional IRA withdrawals are added to federal taxable income and ordinary income tax rates apply.

For example, under Section 1231 of the U.S. Internal Revenue Code, the sale at a loss of such assets used in a trade or business, usually gives rise to an ordinary loss for income tax purposes.

And to the extent you can combine rebalancing with any tax - related moves, such as selling off shares of poor performers to generate realized capital losses that can be applied against realized capital gains or even ordinary income, so much the better.

To the extent such gain represents accrued market discount, it will be taxed as ordinary income, with the balance treated as capital gain.

Conversely, with some tax - deferred accounts, you may contribute pretax dollars to qualified retirement savings plans, such as IRAs or company - sponsored 401 (k) s, in which case distributions or withdrawals are taxed at ordinary income tax rates when they occur after age 59 1/2.

Income received from a mutual fund is generally taxable at the shareholder's ordinary income tax rate, the notable exception being if the account is held within a tax - advantaged vehicle such an IRA or 401 (k), where distributions are tax - deferred or tax -Income received from a mutual fund is generally taxable at the shareholder's ordinary income tax rate, the notable exception being if the account is held within a tax - advantaged vehicle such an IRA or 401 (k), where distributions are tax - deferred or tax -income tax rate, the notable exception being if the account is held within a tax - advantaged vehicle such an IRA or 401 (k), where distributions are tax - deferred or tax - free.

Income from products such as real estate investment trusts (REITs) and master limited partnerships (MLPs) is considered ordinary iIncome from products such as real estate investment trusts (REITs) and master limited partnerships (MLPs) is considered ordinary incomeincome.

Distributions from regular 401 (k) plans are taxed as ordinary income and may be subject to a 10 % federal income tax penalty if withdrawn before age 59 1/2, except in special circumstances such as disability or death, or separation from service after age 55.

Withdrawals from traditional IRA are considered an ordinary income and they are taxed as such (+ potential penalties).

However, under the five - year rule, assets you withdraw will be included in your ordinary income and are taxable as such.

This interest charge and ordinary income tax treatment may apply even if the Fund distributes such income as a taxable dividend to its shareholders.

As discussed more fully in the relevant pricing supplement, these rules provide that any long - term capital gain that an investor recognizes in respect of an ETN that is in excess of the amount of long - term capital gain that such investor would have recognized if it had instead owned a direct investment in the MLPs that are referenced by the ETN will likely be recharacterized as ordinary income and subject to an interest charge.

Short - term gains on such assets are taxed at the ordinary income tax rate.

The formula requires payment to shareholders during a calendar year of distributions representing at least 98 % of the Fund's ordinary income for the calendar year and at least 98.2 % of its capital gain net income (i.e., the excess of its capital gains over capital losses) realized during the one - year period ending October 31 during such year plus 100 % of any income that was neither distributed nor taxed to the Fund during the preceding calendar year.

Such gains and losses are treated as ordinary income and loss.

A Fund's transactions in foreign currencies, foreign currency - denominated debt securities and certain foreign currency options, futures contracts and forward contracts (and similar instruments) may give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the value of the foreign currency concerned.

Therefore, the payment of this tax would reduce a funds» economic return from its PFIC shares, and excess distributions received with respect to such shares are treated as ordinary income rather than capital gains.

Therefore, the payment of this tax would reduce the fund's economic return from its PFIC shares, and excess distributions received with respect to such shares are treated as ordinary income rather than capital gains.

An additional 3.8 % Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions received from the fund and net gains from redemptions or other taxable dispositions of fund shares) of U.S. individuals, estates and trusts to the extent that such person's «modified adjusted gross income» (in the case of an individual) or «adjusted gross income» (in the case of an estate or trust) exceeds a threshold amount.

If he or she withdraws these funds, the money that is attributable to gains (such as interest) will be taxed as ordinary income to the policy owner.

If the aggregate amount results in a loss, the taxpayer will not be able to offset this ordinary income (w - 2 income for example) by such loss.