US is reason for delay

[katshamm]

New to site today. For those who are unaware the US tax laws changed drastically for capital gains today. If and when we all become milionairs the Dinar could not go up prior to today. The US will get a huge shot of funds once the Dinar RV's. Capital gains increased 69% today.

[bear]

New to site today. For those who are unaware the US tax laws changed drastically for capital gains today. If and when we all become milionairs the Dinar could not go up prior to today. The US will get a huge shot of funds once the Dinar RV's. Capital gains increased 69% today.

Need a link for that one. I have read that they were extended from the Bush tax law. I will find that link and post it.

[rcrge]

Need a link for that one. I have read that they were extended from the Bush tax law. I will find that link and post it.

Thanks bear you beat me to the question of where is the link

[tired_of_waiting]

God as my witness I'll burn mine befor paying 69%

God as my witness I'll burn mine befor paying 69%

[Bigdad]

Ill move out of the country before I let uncle sam take 69%!

[cenlalsufan]

he said they just went up 69% not taxes are 69%...so if taxes were 35% then what is 69% of 35%..thats how much they went up...i think..let me know if im wrong??

[inheritance]

http://www.bargaineering.com/articles/2011-long-term-capital-gains-tax-rates.html

http://hken.ibtimes.com/articles/29669/20100621/the-2011-capital-gains-tax-rate-hike-and-its-impact.htm

Ummm, not so sure about your post!

Ralph Lauren's decision to sell over 25 percent of his holdings in Polo Ralph Lauren (NYSE:RL) prompted some speculation that he was doing so to avoid higher long-term capital gains taxes that will take effect in 2011.

Enlarge This ImageChip East / Reuters

A tax form is pictured on tax deadline day

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A tax form is pictured on tax deadline day at the main Post Office in New York April 15, 2009. As a deep recession strips Americans of their jobs, homes and investments, the 2009 U.S. tax season promises to see a large uptick in first-time delinquent income taxpayers.

Although it is unclear if taxes factored into Lauren's decision, the hike on the individual long-term capital gains tax rate may have interesting implications.

Since 2008, individuals in the two lowest tax brackets paid 0 percent long-term capital gains tax while everyone else paid 15 percent. In 2011, individuals in the lowest tax bracket will pay 10 percent while the rest will pay 20 percent.

The majority of U.S. stock investors are in the higher brackets and they face a 5 percentage points increase.

Professor Jeffrey Haas of New York Law School sees the impact as only modest, noting that 5 percentage points is not enough to influence many investors who are in it for the long haul.

However, Haas does believe that the rate hike adds one more reason for investors not to invest in equities. In addition, shortly before 2011, the rate increase may create some artificial selling pressure as investors rush to lock in lower tax rates on gains.

Haas added that the Obama administration has put tremendous entitlement programs in place and this tax hike takes a step towards paying for them.

Professor Dennis Ventry of UC Davis School of Law notes that while savvy investors may sell winners on the last trading day of 2010, they may also save the losers for 2011.

Investors can offset taxes on stock gains with stock losses. Therefore, they may save the losers for 2011, when the losses can offset gains that will be taxed at 20 percent instead of 2010 gains which will be taxed at 15 percent.

One interesting idea for buy-and-hold investors is to sell stock gains at the last possible trading day of 2010 and immediately buy it back in 2011. By doing so, investors can lock in existing gains at a lower capital gains tax rate and still keep the investment.

For example, if the cost basis is $10 and the investor sells it for $20 on the last trading day of 2010, his $10 gain will be taxed at the 2010 rate (which is zero for some lower income individuals). If he immediately buys it back on the first trading day of 2011, he now owns the stock at the new cost basis of $20 (assuming no change in price) and the $10 original gain is forever locked in at the 2010 tax rate.

Both Ventry and Haas are currently unaware of any rules that would prevent investors from taking advantage of this method. Professor Linda Beale of Wayne State University Law School, another tax expert, also currently sees no rules against this method and added that tax laws recognize "the property right of ownership that includes a choice of deciding when to dispose of property."

There is the so-called “wash sale rule” which prohibits investors from selling losers, using them to offset gains, and then immediately buying them back. However, there are currently no rules that prohibits investors from selling winners and immediately buying them back.

But for long-term investors, this method does carry a risk; it is only beneficial if the stock appreciates in the long run and rises above 2010's closing level. If it does not, this method would cause investors to pay unnecessary capital gains tax.

Ventry points out that corporate insiders – like Ralph Lauren – cannot take advantage of this method because the SEC prohibits these shareholders from buying and selling within a short period of time.

Edited January 1, 2011 by inheritance

[Bigdad]

LINK

I found this link about the capital gains tax rates.

[inheritance]

Long Term Capital Gains Tax Rates Increase in 2011

by Jim Wang Email Print

When people talk about the Bush-era tax cuts, they’re usually referring to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) signed by President Bush in June of 2001. Many of the provisions were set to phase in over 9 years but those were accelerated when the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) was signed just two years later. Many of those cuts are set to expire this year, the two big items being income tax rates and capital gains rates.

President Obama has publicly said that he will let the Bush-era capital gains tax cuts expire on schedule this year, so it’s important to know how they will affect your investments.

2010 Capital Gains Tax Rates

Here’s what the rates are this tax year:

2009-2010

Tax Bracket Short Term Long Term

10% 10% 0%

15% 15% 0%

25% 25% 15%

28% 28% 15%

33% 33% 15%

35% 35% 15%

2011 Capital Gains Tax Rates

One of the changes Bush implemented was an adjustment to the tax brackets themselves. The Economic Growth and Tax Relief Reconciliation Act of 2001 introduced a 10% tax bracket and the brackets themselves were lowered. The 28% bracket was lowered to 25%, the 31% went to 28%, etc. If we assume the pre-cut brackets along with the pre-cut capital gains rates, we have the following:

2011 Onward

Tax Bracket Short Term Long Term

15% 15% 10%

28% 28% 20%

31% 31% 20%

36% 36% 20%

39.6% 39.6% 20%

As for dividend income, they are set to be taxed as ordinary income in 2011.

It’s almost certain that taxes, especially capital gains taxes, will increase. Even though it’s June, now’s the time to start thinking about what your plans are for the upcoming months. Does it make sense to cash out some winners and save 5% on your capital gains taxes?

http://www.bargaineering.com/articles/2011-long-term-capital-gains-tax-rates.html

Edited January 1, 2011 by inheritance

[katshamm]

God as my witness I'll burn mine befor paying 69%

God as my witness I'll burn mine befor paying 69%

Let me reiderate. The 69% is an overall cap gain to the economy Not your pocket. Yes it will be much higher then 2010. that is my point. Your income level ect will determine what uncle sam gets. The US will aquire cash injections from the new laws to help our economy. Make sense?

[bishop]

Capital gains remained the same with the extension of Bush tax cuts

[katshamm]

overall capital gains in all areas is 69% to boost the economy. Your taxes are based on your income ect... The stratigy is to increase taxes on the people who are making money. Therefore.. the Bush admins has expired and the new taxes started today. DOES it not make sense our taxes will improve the economy????? US gets higher taxes and our new found wealth as we spend it here.

[katshamm]

Capital gains remained the same with the extension of Bush tax cuts

Bushes tax expired today? its all over the news? Type in 2011 capital gains directly in the internet you can read 100's of confirmations.

[tommy17]

Well if they waited till the new year to increase are tax rate ,i'am gonna pay quartly on the taxes that i owe and not pay in full till 2012. I'all draw interest off that money for 15 months.

[Traconesu02]

Capital gains taxes will remain the same for 2011 and 2012 as they were in 2010.

http://thefinancebuff.com/0-capital-gains-tax-rate-for-2011-and-2012.html

[keepmwlknfny]

New to site today. For those who are unaware the US tax laws changed drastically for capital gains today. If and when we all become milionairs the Dinar could not go up prior to today. The US will get a huge shot of funds once the Dinar RV's. Capital gains increased 69% today.

You have been misinformed drastically......and FYI the US has no control over the value of a countries currency or when it can start to appreciate.....

[jte70]

You have been misinformed drastically......and FYI the US has no control over the value of a countries currency or when it can start to appreciate.....

From what I understand, even though there is a lot of debate about it, our RV money will be taxed as ordinary income. If it RVs high, it will put all of us in the highest tax bracket which is still 35%, but it isn't due til April 15 of 2012.

Edited January 1, 2011 by jte70

[keepmwlknfny]

From what I understand, even though there is a lot of debate about it, our RV money will be taxed as ordinary income. If it RVs high, it will put all of us in the highest tax bracket which is still 35%, but it isn't due til April 15 of 2012.

You can ask 10 different tax pros and get 10 different answers Thats what we have been seeing on these forums.... I guess its all who you feel comfortable with and who can back you up and themselves should problems arise with the IRS.....

[gbesley]

That post that taxes went up to 69% is NUTS. Do your own research. Some folks like to spew fear and deception. I, for one know that information is inaccurate.

[hoping so]

overall capital gains in all areas is 69% to boost the economy. Your taxes are based on your income ect... The stratigy is to increase taxes on the people who are making money. Therefore.. the Bush admins has expired and the new taxes started today. DOES it not make sense our taxes will improve the economy????? US gets higher taxes and our new found wealth as we spend it here.

************************************************************************************************

Bush tax cuts were EXTENDED:

http://www.fitsnews.com/2010/12/17/bush-tax-cuts-extended/

Thought for Capital gains you had to have your investment for 3 years (?)

[fnbplanet]

Bishop is correct, the capital gains tax rate was extended for two years. The question that you need to be asking is, Are the dinar considered a "collectible", because it is not publicly traded (this would make your gains subject to regular income tax - bad), or are they indeed a "currency", and subject to capital gains (only about 15% for most of us - good).

[beaver]

New to site today. For those who are unaware the US tax laws changed drastically for capital gains today. If and when we all become milionairs the Dinar could not go up prior to today. The US will get a huge shot of funds once the Dinar RV's. Capital gains increased 69% today.

Check this out http://www.paysonroundup.com/news/2010/dec/30/how-will-new-tax-laws-affect-you/

[jamadude99]

This should clear up any questions out there about the tax laws just passed by Washington!

Now that the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 is law, you’ll want to familiarize yourself with how this new legislation affects you — both as a wage earner and an investor.

Consider these key parts of the new tax laws:

Income tax rates remain the same.

Under previous legislation, tax rates were scheduled to rise in 2011, but the new laws will keep all tax brackets the same.

Payroll taxes reduced by 2 percent.

Your share of the Social Security payroll tax will drop from 6.2 percent to 4.2 percent for 2011.

Consequently, you should see more take-home pay.

You may want to consider investing at least part of this savings in another retirement account, such as an IRA.

Top capital gains and dividend tax rates stay at 15 percent.

The question of what would happen to capital gains and dividend taxes has been of great interest to most investors.

For the past several years, the highest capital gains and dividend tax rate has been 15 percent.

However, this 15 percent rate was scheduled to expire at the end of 2010; after that, dividends were to be taxed at one’s standard income tax rate, while long-term capital gains would be taxed at 20 percent for anyone above the 15 percent income tax bracket. But due to the new legislation, the highest tax rate for both capital gains and dividends will stay at 15 percent for at least 2011 and 2012.

The capital gains and dividend tax provisions can have significant effects on your investment decisions over the next two years.

You now still have a strong incentive to follow a “buy-and-hold” investment strategy, under which you’d earn the favorable 15 percent rate on capital gains from selling an appreciated asset, such as a stock, that you’ve held at least one year.

And the 15 percent rate on dividend taxes will continue to provide you with good reason to seek out those stocks that regularly pay dividends; besides offering an advantageous tax rate, dividends, when reinvested can help build your ownership stake in the dividend-paying investments. (Keep in mind, though, that companies are not obligated to pay dividends and can reduce or discontinue them at any time.)

Estate tax exemption set at $5 million per person.

Under previous tax laws, the estate tax was scheduled to be repealed entirely for 2010 only, and then return in 2011, with an exclusion amount of $1 million and a top tax rate of 55 percent. Under the new legislation, the exclusion amount for 2011 and 2012 is $5 million per person ($10 million for married couples), with a top tax rate of 35 percent.

The new law also includes a “portability” provision which can provide increased flexibility in estate planning between married couples to attain full use of the $10 million exemption.

You’ll need to see your tax and legal advisers to determine what, if any, changes you’ll want to make to your estate plans for the next couple of years as these laws will sunset at the end of 2012.

Gift tax exemption set at $5 million per person.

Under previous tax laws, the gift tax exemption for lifetime gifts was $1 million.

The new legislation increases the lifetime gift tax exemption to $5 million per person.

You should work with your tax and legal professionals to determine whether the new exemption amount provides opportunities for you to consider during the next two years.

As always, changes in tax laws can have a big impact on your financial future — so stay informed and take the steps you need to keep progressing toward your goals.

Scott Flake is a licensed financial adviser with the firm of Edward Jones. He hosts regular investment discussions. For more information, call his office at (928) 468-1470 begin_of_the_skype_highlighting (928) 468-1470 end_of_the_skype_highlighting.

This article was written by Edward Jones for use by your local Edward Jones financial adviser.

[abcmec26g]

Well the tax would be due April 15th 2012 what is in November of 2012 Just a thought

[JSOD67]

Katshamm is correct, capital gains did go up 3.6% due to a hidden clause in the Health Care Bill Odummy passed this past year. It has nothing to do with the Bush Tax Cuts. We will now be faced with just shy of 19% for long term investments, thats if the US considers it capital gains. We will never know until after this investment hits to see what will be imposed for taxes. The government really doesn't want to have too many of us gain financial stability because it gives us too much power behind it, JMO. Do some research on the new Health Care Bill, it will scare the hell out of you when you see all the under written junk within it. Happy New Years too all, best of luck for 2011.