snipped-for-privacy@aol.com wrote
Another pig ignorant lie.
Another pig ignorant lie.
Another pig ignorant lie with the lower level military hardware that the US bought for the Korean War.
Another pig ignorant lie.
They werent in fact a nose bleed for anyone.
You're the one that needs to show hour you know they there will return any time soon.
On Sat, 16 Nov 2019 01:47:32 -0500, snipped-for-privacy@aol.com wrote:
Yes last I remember about half
Principal residence is sheilded to 250,000 for a single personand
500,000 for a couple. - and total capital gains lifetime to 866,912 is exempt. On income or rental property you can "1031" it into another income property within 180 days without paying capital gains on it - which means you can "defer" the tax. A primary residence must have been lived in for 2 of the last 5 years to qualify.Also The capital gains exemption (CGE) is available to individuals only, not corporations, and forms a deduction (worth 50% of the exemption, since 50% of capital gains are taxed) from net income. Benefits that use net income, such as the age credit and OAS clawback, will be calculated before the deduction is reflected.
To qualify for the exemption, three tests must be met at the time of disposition. Small business corporation (SBC) test: All, or substantially all, of the companys assets must be used in an active business carried on primarily in Canada. All or substantially all is generally considered to mean at least 90%, using fair market value. Only the companys assets are considered in the criteria; debt and other liabilities have no impact. Assets not listed on the balance sheet are also included, such as goodwill and internally generated patents. The reference to primarily in Canada generally means at least 50%. Holding period test: The disposed share must have been owned by the shareholder or a related person throughout the 24-month period prior to the disposition. This is an attempt to limit the CGE to longer-term investments rather than rewarding quick flips. Basic asset test: Throughout the 24 months prior to the disposition, the corporation had to have been a Canadian-controlled private corporation and more than 50% of the companys assets had to have been used in an active business carried on primarily in Canada.
A series of tactics are commonly used to help qualify for or optimize CGE.
Purify
When assets do not meet the 90% percent threshold for the SBC test, shareholders can attempt to purify their assetsi.e., employ them in earning active business income. To adjust the mix of active and passive assets, a company could use passive assets to pay down liabilities, buy active business assets or pay a dividend to the shareholder. By recharacterizing or removing passive assets, the mix of assets is re-proportioned to meet the 90/10 ratio of active to passive.
Crystallize
Crystallization refers to claiming the CGE on qualifying shares that the shareholder continues to own. When CGE is crystallized, the CGE claimed is embedded in the adjusted cost base (ACB) of the shares held by the shareholder, increasing the ACB by the amount of the CGE claimed.
Say, for instance, a shareholder has $800,000 in CGE left and her shares have an ACB of $1,000 and a fair market value of $850,000. If she crystallizes her CGE, the ACB of the shares will increase to $801,000 instead of $1,000.
The CGE claim cannot be immediately converted to cash without triggering negative tax consequences. By embedding the amount claimed in the ACB, it reduces the capital gain when the shareholder eventually sells the shares. Crystallizing ensures a shareholder benefits from this tax advantage without having to meet qualifying criteria at the time of sale.
Multiply
Multiplication involves using the available CGE of other family members. If several family members can claim their CGE at the time a business is sold, the overall income tax liability can be reduced across the family unit.
Pitfalls to watch for
When using these planning strategies, watch for anti-avoidance measures and other tax implications, such as the following, to minimize any unanticipated consequences. As mentioned, Section 84.1 of the Income Tax Act blocks shareholders from using crystallization strategies to convert CGE into cash. The alternative minimum tax (AMT) can cause an unexpected tax liability in the year CGE is claimed. Generally, this can occur when a taxpayer crystallizes in a year of otherwise low income. While AMT is refundable, a refund is generated only when AMT is less than* the regular tax calculation in the subsequent seven years. A balance in a taxpayers cumulative net investment loss (CNIL) account can restrict access to the CGE. As the name implies, this is a cumulative calculation that considers all of an individuals investment income and investment expenses incurred after 1987. If the calculation results in a net loss, the CNIL could impact a CGE claim. An allowable business investment loss (ABIL) could impact a CGE claim. If an ABIL is realized in the year, whether or not it is claimed on the tax return, it is used in the CGE calculation. The CGE could be denied if it is reasonable to conclude that a significant portion of the capital gain realized on the disposition of the shares is attributable to a lack of dividends having been paid on the shares. The capital gain from a disposition and capital gain deduction must be reported and claimed in the year of disposition. Failure to include the deduction in the return cannot be corrected later. If the capital gain is realized in a trust and the trust allocates the capital gain among several family members, these amounts are payable to the family members. Using a family members CGE entitles that person to a payment.
Mortgage rates were 22% when I bought this house. Fortunately I was able to assume the 6% existing mortgage on the property!!!!
Actually Tbonds peaked at ~16%. You're right, if you asked anyone just a few years prior if that could happen, they would have said no, never. It's certainly possible for rates to return to double digits. One simple method would be for investor psychology to change, where they come out of dreamland and realize the US is piling up debt at an alarming rate, that we may not be able to pay it back. And like we've agreed in the past, even if rates just got back to their historic range, the increase in interest payments on new debt, on debt rolled over increases dramatically and that makes the deficits worse. If you looked at countries from Germany to South America, to Greece, none of them would have thought they would wind up busted either, but they did.
Mine were 9% and they were heading up after that. Smart thing I did was take 20 year mortgage and pay it off in 18.
But the USA never did, and there is a reason for that.
When I moved to CT in 1981 I was able to get a good deal at 15%. Refinanced twice as the rates dropped.
I had an Excel spreadsheet from somewhere that showed you the savings if you prepay. Every month I put the payment and extra payment and the total savings showed. It was a visible incentive to pay it off quickly.
I was lucky to lock in 7.25% in 1971. It was already creeping up. The rate went up .25% from the time we signed the contract on the house and the time the note went through (about a week). I ended up getting $2,000 off the price of the house because the contract was based on 7% and I had already taken posession of the house.
You think that just because we used to be fiscally stable that we are now? Great, buy some bonds. Tell your friends, tell your neighbors. We need to keep that myth going. (at least another 10-20 years until I am returned to the soil).
I believe that was another thing my man Trump was suppose to do and make a very short tax return paper.
Mine is simple now. Just a few stocks, my and wifes IRA and SS. Just the standard deductions and state and local taxes.
I use a tax program like Turbo Tax on the computer, and it still takes a while to work through all the questions on it.
I have no idea if it is done right or not. Just hope for the best. Seem to recall that Einstein said something like taxes are not for math people, but philosophers.
I have heard and know of one man that has called the IRS and gotten several answers to the same question about something relative simple like his teachers pension and taxes.
Nope, I realise that the USA has never been stupid enough to do what Germany did between the wars, or Greece has done recently, or Venezuela either and that the WW2 govt debt was much higher and that worked out fine.
No thanks, I get a better return on the stock market.
Few of those have anything like my accumulated wealth.
It isnt a myth, it's a fact that that's a safe place for your money, although the returns arent anything special currently
Makes more sense to be burned. At the stake in your case.
I use a simple tax preparation package on my computer that does all the calcs and what-ifs - and e-files for me. I do mine. my wife's, both daughters, son-inlaw and stepmother for about $30
Disclaimer: I'm a programmer not an accountant but if any of my crew wrote a section of code as murky as those worksheets they would spend the next month assigned newbie cleanup tasks.
Compared to Thumper and Bozo he's a gem!!!And as for "free enterprise" I'll take the Canadian system over the Yankee system - even with our higher taxes - ANY DAY. Speakerg both as a private citizen and as a businessman.
Up here in Canada we still elect ourgovernment, we don't BUY it.
That applies to me, two govt. super pension reviews each year and increases paid according to inflation. I'm into my 19th year on it now.
What sort of place did you work for and why did you stay?
I used Turbo Tax when I had my business but it is not worth it for my individual return.
Mine started at 13%, rocketed up to 18% forcing me to do two jobs in order to keep the house. It too was 20 years but paid it off in 13. Life became easier after that - until I became sick in 2001 and, after a long period on sick leave, was forced into very early retirement. All my plans went just a little awry! :-(
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