Sentences with phrase «rather than ordinary income»

Profit to participants in the form of capital return rather than ordinary income?

Then the stock appreciation is subject to capital - gains tax rather than ordinary income tax.

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.

An income tax provision related to the entertainment industry could be tweaked (e.g. treating sales of partnership interests in movie productions as ordinary rather than capital gains income, or limiting the number of years that entertainment company losses could be carried forward) and an appropriations bill could simultaneously fund the programs.

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.

Where control persons have choices, they would rather create wealth by some means other than having ordinary income from operations simply because striving for cash flows or earnings from operations tends to be highly inefficient tax-wise.

Most investors and most companies are interested in wealth creation rather than ordinary, and therefore, taxable 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.

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.

The IRS ruled in March that bitcoins are property, rather than a currency, and thus subject to ordinary income tax or capital gains taxes.

NAR and other industry groups were concerned the law would increase the tax on carried interest in real estate and other investment partnerships by treating it as ordinary income rather than as capital gains, but that provision was left out.

Specifically, if you are classified as a dealer, it's just like running a retail store: The IRS considers your profits to be ordinary income, rather than investment profits.