Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Keep at Lease Three Month's Worth of Living Expenses in a Savings Account or High-Yield Money Market Account

Keep at Lease Three Month's Worth of Living Expenses in a Savings Account or High-Yield Money Market Account - Because we need to rely on our emergency funds during time...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

Tax Advice Capital Gains

Investing in anything, be it stocks or real estate, means that you put capital into it and hope it will grow. When this capital does grow and it is time for you to collect it, you might find that you cannot get the full amount because of capital gains taxes. This is the tax that is applied if you sell any assets that are not considered inventory, like stocks, bonds and real estate, which has had its value go up from what it was worth originally. So if you buy stocks, bonds or real estate and then sell them for a profit, you have to pay a capital gains tax.

Paying a capital gains tax can be particularly difficult because many people often feel that they deserve the whole amount. There is a method in which to avoid capital taxes, called a 1031 exchange. This refers to parts of the Internal Revenue Code which specifies how these taxes and related taxes can be avoided.

To put it simple, you do not 'sell' any of your assets, but you do 'exchange' them for something else. There exists a fundamental difference between these two actions, and using the 1031 exchange you can get the best possible deal from your investment's growth.

For example, let's say you own some stocks in a mining company. This company has done reasonably well in the past, and you have seen its value rise. This means that your stocks grow as well, to perhaps 1.2 times their original worth. If you sold these stocks and gained a profit, you would lose out some of the money you obtain to the capital gains tax. You would not be able to get the full 120% return on the investment like you wanted as a result.

What you do invest is reinvest the amount you have made by exchanging these mining company stocks with stocks that are worth more than your current stocks from a different mining company. You will not incur any capital gains tax through this, because no selling was involved and therefore a tax cannot be placed against it. You get to keep your 120% return of your investment entirely, but it remains in the form of stocks and not cash.

Applying for a 1031 exchange is a bit cumbersome and complicated, but if you turn to a professional who is well qualified to help you, you shouldn't have a problem. There are rules to adhere to and conditions to be satisfied in order for it to count as being legal and helping you avoid capital gains tax.

Discuss It!
1 2 >

replica watches sale said:

replica watches sale

replica watches said:

replica watches

imitatie horloges heren said:

<a href="http://www.replicarolexonline.nl">imitatie horloges heren</a>

[url=http://www.imitatiehorlogesonline.nl]imitatie horloges[/url] said:

imitatie horloges

watch cinemas on showbox said:

showbox android app

new year 2018 said:

new year 2018 In 2018, New Year will be coming on Sunday, so it will be much more fun to be celebrated among the family

qaz said:

<a href="http://www.rolexreplicait.it">orologi replica italia</a>

qaz said:

[url=http://www.rolexreplicait.it]orologi replica italia[/url] [url=http://www.replicaderelojesdelujo.com/]réplicas de relojes[/url]

orologi replica italia said:

Given the impossibly diminutive dimensions of the moon, it is amazing

repliche rolex said:

to see the rich details of the physiognomy and the star-studded sky in the background. The gold Korona ring â a circular

réplicas de relojes said:

aperture that indicates the current phase of the moon â is another Sarpaneva speciality and

Relojes de imitación said:

or aura of plasma that forms around the Sunâs edge and can be seen during a total solar eclipse.

audemars piguet replica said:

To house Sarpanevaâs moon phase complication, MB&F tinkered with the case and engine

rolex replica said:

The case size has increased by 0.55mm and includes a lateral pusher to adjust the phases of the moon. MB&F also replaced the original HM8 battle-axe

Copias de relojes said:

Una cosa es tener una cara retro, pero otra muy distinta es tener un movimiento retro. Llevando el reloj al siglo XXI, Omega ha equipado a ambos modelos con sus movimientos Master Chronometer patentados.[url=http://www.replicaderelojesdelujo.com/]Replica de relojes[/url] Oficialmente certificado por METAS, el calibre automático 8804 (Segundos pequeños) y el calibre 8806 (Segundos centrales) son resistentes a los campos magnéticos de 15,000 Gauss, baten a 3,5 Hz y están [url=http://www.replicaderelojesdelujo.com/category/breitling/]Breitling replicas[/url] equipados con Si

replica orologi said:

[url=http://www.rolexreplicait.it/]replica orologi[/url]

orologi repliche said:

small seconds counter and inscriptions are black and there is even a touch of colour on the central seconds model. Unlike its ancestor with luminous radium dots on th

Omega replica said:

features touches of SuperLumiNova on the tips of the white gold hour markers and the Dauphine-style hour and minute hands that glow blue in the dark.

Replica de relojes said:

However, if I had to choose between the two watches, the Small Seconds model gets my vote. The harmonious silver-on-silver tonality of the dial, the plump vintage-style numerals at 12, 3 and 9 oâclock, the arrow-shaped hour markers that curve to meet the slope of the dial, the elongated leaf-style minute hand that reaches all the way to the minute track, and the pleasing rotundity of the case endow this model with a truly vintage spirit that still resonates today.

Breitling replicas said:

Itâs one thing to have a retro face, but quite another to have a retro movement. Bringing the watch squarely into the 21st century, Omega has kitted out both models with its proprietary Master Chronometer movements. Officially certified by METAS, automatic calibre 8804 (Small Seconds) and calibre 8806 (Central Seconds) are resistant to magnetic fields of 15,000 Gauss, beat at 3.5Hz and are equipped with silicon balance springs and Omegaâs famous co-axial escapement. The case back with a Naiad Lock has a sapphire crystal window to view the movement with its rhodium-plated rotor and bridges and Geneva wave decoration.

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Zero-coupon Bond

Definition: A bond that doesn't pay interest but is sold at a deep discount.  The investor profits from the bond going up in value (kind of like ...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com