Tax Strategies Scan: Facing Capital Gains

Wednesday, April 22, 2015 Print Email

2015 capital gain tax: 5 things you need to know:

According to ‘The Motley Fool’, the investors who seek to avoid capital gain tax liabilities are suggested to avoid selling in 2015. If the clients fall in the 10% or 15% tax brackets, they will not pay long-run capital gain tax on the sale of securities they owned for more than one year but they will be imposed high capital gain taxes on the sale of investments owned for less than a year. The sale of lossmaking investments are highly advisable to offset the capital gain taxes. Another tax saving strategy is to hold the assets till death.

After a bad year for funds, prepare for a tax hit in 2015:

‘Wall Street Journal’ reports that although the funds underperformed last year but the investors are going to bear higher taxes in 2015 as several mutual funds have resulted in capital gains. These investments are no more lossmaking as to allocate against the capital gains resulted from their sale. A principal at Vanguard Group, Dan Newhall, declares that it is indicated from the distributions that the exchange-traded funds and the index funds are usually more tax efficient than the activity managed funds.

3 smart ways to use your tax refunds in 2015:

‘The Motley Fool’ says that the tax refunds received by the taxpayers should not be spent on shopping rather they are advised to deposit their money in their IRA and retirement accounts. They can also use their tax refunds in contributing to a tax-advantaged account for the education of their children. Another wise option to spend their refunds is making home improvements.

Personal finance Q&A: consider tax implications when downsizing:

According to ‘The Los Angeles Times’, it is advisable for a retired person to consider the tax related matters in case of selling a house. There may result high capital gain taxes from the sale to be paid by them whereas her inheritors might face a tax base equal to the value of the house at the time she dies. 

Source: ReadyRatios

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