What are the tax advantages of using a financial trust?
406661
Depends on the type of trust.  IF the trust can be revoked, then none.  If the trust is irrevocable, then the trust pays tax on its own income, splitting the tax liabiilty.
1008504
a temporary trust bank acount but it would be wise to get a bank acount in the future
1025105
A CRT is a complex vehicle that can be very valuable when used in the right circumstances.  It can't be used as an active trade or business (selling property continuously may be considered a business. The annual payout is calculated based on the fair market value of the assets and the specified rate in the trust document, this is prorated for any mid year contributions.  The CRT would pay to you for life an depending on ages and payouts rates to your kids for a term of years or for their lives.  At the end of the trust term the assets would transfer to charity, this could be a Family Foundation but the initial tax deduction may be reduced to the reminder interest of the basis depending on the assets contributed.  The amount of money family members could take as a salary would depend on the value of the foundation and how much work was being done on behalf of the foundation.  The CRT is tax exempt but distributions are taxed on a worst in first out philosophy.  The most important thing to avoid that could undo tax benefits in a given year is a CRT can't have any debt financed income.
1071060
I'm not sure about your question--which is better?\n\nWhen you have a mortgage, early on the bulk of the payments are interest, and you can deduct that amount on  your income tax.  A good deal.
1152490
Insted of keeping money in Capital gain bonds or in some other tax savings bonds,   Buy some property (A house or a flat).  That will give you better return and on the other you can save capital gains.  Consult your C.A.
325118
I found this website really useful:\n\nhttp://www.direct.gov.uk/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/BeginnersGuideToTaxArticles/fs/en?CONTENT_ID=4015472&chk=iIHw8P
100055
Yes you can. Check out Equity Trust Company on the web. The ability to shield capital gains from taxes by using your IRA is an incredibly powerful tool.\n\nwww.trustetc.com
877247
it depends on your age - if you are young and still working stock and bonds are very god but if you are older you ay want to keep a guaranteed return on investment such as CD's\nreal estate is up and down I dont recommend it
37308
There's many advantages to your money when you put it into a 401k plan.  First, money placed into the 401k plan is deducted from your paycheck _before_ taxes are applied.  So if you make $40,000 a year and you put $5,000 into your 401k, the government taxes you as if you made $35,000.  So the first benefit is overall reduction of taxes in the current year.\n\nThe second benefit is, your money grows within the account tax free.  So, assuming you held onto the account for years and years, let's say it grew from $5,000 to $50,000 10 years later.  That means a $45,000 increase that's never taxed.  Not too shabby, right?\n\nThird, you are only taxed when you withdrawl money from the account after the age of 59.5.  Assuming this is your only source of income at that time, you'll be in a lower tax bracket when you start to use the money.  So, overall, that money is taxed less than it would have been if you used it while you were working.\n\nOf course, this was meant to be a retirement plan (as opposed to a savings account) and provisions were made to assure that any withdrawals prior to the age of 59.5 is penalized an extra 10% on top of your usual tax rate.  This is to discourage misuse of the retirement plan unless you absolutely needed the money.
673210
I recommend low-cost mutual funds.  Vanguard has many good ones, and Fidelity has some very low-cost index funds.  Look for tax-managed funds, or tax-exempt bond funds.  Some bond funds are exempt from taxes in a particular state as well. However, tax exempt bond funds give lower returns.  You should talk to a tax advisor to see which way is better for you.  In stock funds, index funds tend to have lower capital gains than actively managed funds, and the returns are often just as good or better.\n\nIf your stock isn't already in a retirement fund, you can't just put it all in there at once.  You're limited to $4000/year in contributions. Do a Roth IRA if you can, but there's an income limit, and the stock sale may put you over that limit.  If you don't qualify for Roth, put what you can in a traditional IRA.  Either way, inside the IRA you can buy some of the mutual funds I mentioned.\n\nIf you can transfer $4000 worth of stock directly into the IRA and then sell it, that may avoid the capital gains tax on that portion.\n\nAny single stock is a high-risk investment, because it can go up or down quickly, so you can reduce your risk a lot by selling and diversifying (into those mutual funds.)  The bad news is that you'll have to pay capital gains taxes on the sale of your stock, especially if you've had it for less than a year.\n\nYou should also talk to a tax professional about the Alternative Minimum Tax, which can hit you if you have a large capital gain like that.\n\nBy the way, real estate has been fantastic recently, but it's showing signs of slowing down.  This may not be a good time to invest heavily in real estate.
805110
Trusts don't cause problems, in fact, in most circumstances, they resolve many problems. So, to answer your question, YES, trusts should be allowed by law. Trusts don't generally cause problems in and of themselves and, yes, their benefits far outweigh any disadvantages in most cases.\n\nTrusts are not right in every circumstance, consult a lawyer in your area for details.
484914
The Tax Office has issued a Practice Statement concerning the tax issues arising when there are distributions of trust income and capital gains to separate beneficiaries.\n\nBased on the technical application of the law, a beneficiary entitled to a share of trust ‘income’ pays tax on that share of the trust’s net (taxable) income. As a capital gain is not ‘income’, beneficiaries entitled to income may be taxed on capital gains distributed to other beneficiaries, although they have no entitlement to the cash.\n\nThe Practice Statement outlines two practical approaches that will be accepted by the Tax Office in certain circumstances.\n\nThe first enables the beneficiary who receives the benefit of the capital gain to bear the tax.\n\nAlternatively, in certain cases, the trustee can be chosen to recognise the tax liability. A written agreement may be required between the trustee and the beneficiaries. \n\nThe Practice Statement focuses on trusts that have separate ‘income’ and ‘capital’ beneficiaries. However, its application to ordinary discretionary trusts is also acknowledged.\n\nOn contrary it differs from country to country with the percentage or the amount, but the basic remains same... check the link...
24820
It depends on the country and If you are using a moneycorp account or just your American bank account. I built a company to invest in Dubai, UAE for example where there are no capital gains taxes nor income taxes. whichever state you live can still impose taxes upon your profit however, so that is where the offshore or moneycorp account benefits you.
1136364
Consult with your lawyer or accountant. It depends on your personal situation and how much investment property you own or plan to purchase. There are tax consequences (your accountant can delineate the advantages and disadvantages of putting your investment property into an IRA or a trust or an LLC or keeping it owned by you individually). There are also consequences for your heirs (your lawyer can advise you on this). Laws vary from state to state on this.
582023
The advantage of taking out a loan is that you keep whatever savings or capital that you may have intact, for other investment purposes. This is particularly good, at a time when interest rates are low, so you pay very little for what you borrow and stand to make more by investing your savings in stocks, bonds, commodities etc.\n\nThis is however not a good strategy when interest rates go up, or, if you are taking finance at a high interest rate or over a very long term, because it is unlikely that investments would ever make up for the amount that you are paying in interest or fees.\n\nFor example, remortgaging a house to release equity which is then used to purchase say a car. A £20,000 car paid for in this way, using say a 25 year re-mortgage, could cost £50,000 in the end AND, assuming that a car only last for 10 years, you would have to continue paying for the car 15 years after it has gone to the knacker's yard. This is a very expensive use of money indeed!\n\nIn the UK, currently, a significant amount of personal debt is financed at high-ish interest rates. This makes the finance companies a lot of money but causes significant losses to the individual borrowing the money.
953188
Talk to the trust fiduciary.  Money paid from a trust is either income or corpus.  Corpus isn't taxable to you, but income is.  There is no way I, or anyone else on this message board could possibly know how much is from each category, but the fiduciary should know.  To be safe, you could assume the whole amount is taxable and if it isn't, you'll be pleasantly surprised.\n\nMoney paid directly to you in the form of an inheritance is not taxable, but since you mentioned a trust, that trust may have had income.  If you get part of that income, it is taxable to you in the year you receive it.  My guess is that most of the trust is corpus especially if is a trust that was formed upon the death of the grantor (an irrevocable trust) and is only in existence for a short period of time.  If the trust is to last for years and years, then there is a good chance that most of the money paid to you will be taxable since most trusts usually pay out income and keep corpus.  Income is taxed at a very high rate to the trust and a comparatively lower rate to individuals.
303190
You would trust your taxes to a place called "Food Exchange"???\nWould you go out to dinner at a place called "Tax Returns"?\n\nStick with something that has "Tax" in the name. Much safer.