House cap. gains cut to cap at 15%?

Why are Democrats always taxing hardworking Americans every chance they get? I think it's because they want to turn all Americans into working poor so they try to win more votes.

I'm glad I voted for Bush. Too bad the tax is only on long term gains. I knew there was a catch, there always is when your dealing with politicians, esp. demoRats.
 
Quote from GreenTraderTax:

Reduced Rates for Capital Gains & Dividends:

Special rules and exclusions apply. For example, if a shareholder doesn't hold a share of stock for more than 45 days during the 90-day period beginning 45 days before the ex-dividend date, dividends received on the stock aren't be eligible for capital gain rates.

*****The above recap is from RIA. Notice the special rules on dividends, which will ruin this lower rate opportunity for many traders.

I will write about nuances and other observations for traders over the weekend, as the full text comes out.

Robert A. Green, CPA
GreenTraderTax.com
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So if buy a stock one day before the ex-dividend date and sell it on the ex-dividend date,what rate do i pay on the dividends?
 
I heard that reits are not subject to the 15% cap, but what about preferred shares and exchange traded debt that pay income in the form of dividends?
 
Quote from GreenTraderTax:

New Tax Act lower tax rates, effective 1/1/03:
60% x 15% = 9%
40% x 35% = 14%
100% = 23% (60/40) blended tax rate (post act)

Before tax cut tax rates:
60% x 20% = 12%
40% x 37% (was going to be the 2003 rate) = 14.8%
100% = 26.8% (60/40) blended tax rate (pre act)

So commodity traders get a net top federal tax rate reduction of 3.8%.

I plan a full write up on the new act within a few days. Will post at Elite Trader.

Robert Green, CPA
GreenTraderTax.com
More...


Thanks.

:p :p :p
 
I haven't seen specifics of the final legislation but expect dividends on certain types of preferred stock (e.g. those set up as trusts that receive their income from selling debt to the parent company) will continue to be subject to ordinary income tax rates.
 
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