Sentences with phrase «ordinary rates whereas»

D - epreciation: One of the cons of flipping is that it produces taxable income at ordinary rates whereas holding can allow you to have an income via positive cash flow and yet show a tax loss from depreciation.

Not exact matches

For example, the maximum tax rate on ordinary income, including short - term capital gains, is 39.60 percent, whereas the maximum capital gains tax rate on long - term capital gains is 20 percent.

Short - term capital gains are taxed as ordinary income, whereas long - term capital gains taxes are typically capped at 15 % for most taxpayers, which is generally lower than the rate applied to ordinary income.

Traditionally, a major advantage that buybacks had over dividends was that they were taxed at the lower capital - gains tax rate, whereas dividends are taxed at ordinary income tax rates.

The difference affects how you can apply your losses (short - term losses will offset short - term gains and long - term losses offset long - term gains) and the rate at which you'll be taxed on profits (short - term gains are taxed at your ordinary income tax rate whereas long - term gains have a lower maximum tax rate).

For example, the maximum tax rate on ordinary income, including short - term capital gains, is 39.60 percent, whereas the maximum capital gains tax rate on long - term capital gains is 20 percent.

If the car is a high end sports car it would invite higher insurance rates whereas an ordinary car owner would have to pay lesser rates.

Depending on your federal tax bracket, ordinary income tax rates can be as high as 37 percent whereas capital gains tax rates top out at 20 percent.