Exempt Interest on mutual funds are tax free, but would AMT affect all shareholders?
920186
Exempt interest mutual funds yield exempt interest and there can be short term cap gain and long term cap gain. The interest is exempt from federal tax and depending on your state law could be exexpt fully in your state or taxable in your state to the extent of interest received on other state bond. The cap gains will be taxable federal, but there generally is not must gain on a fund. \nThe almin tax rate is either 26 or 28% depending on your income level. Exempt interest can be subject to alt min in the fund ivests in state bonds that are subject to alt min, again there usually is not much of this.\nForeign tax paid on a 1099-INT foreign tax withheld on a foreign bond that paid interest. This tax can be taken as a foreign tax credit on your federal tax return.
1038475
It depends on the type of bond fund that it is. In the U S if the bond fund invests in municipal bonds, the dividend is tax free from federal taxes and possibly from state taxes as well.  You will receive at the end of the year a 1099 telling you if any of the dividends are taxable.  A bond fund that invests in U S government bonds is tax free from state taxes.  A bond fund that invests in corporate or foreign bonds would be fully taxable.  Again the 1099 will give you the information of the amount that is taxable.  Some of the dividends are capital gains and are fully taxable. Again the 1099 will give you that information
100569
Hi again, Stef. The $13,000 is not income per se. The interest you made on the principle (the original amount you deposited into the fund) is income. I do not know what you re doing with the dividends you make on the fund. Are you reinvesting it? Unless you are talking big, big, bucks here in dividends, you have no worries. However, I am concerned that you were charged so much for an 8 year old car.
988055
Boy, I would really avoid that if you can. The withholding isn't really up to you. They are going to keep 30 percent if the principal is before-tax money (in a Roth) and 30 percent of the profit if it is after tax money (in a traditional). But the penalty is so severe that you ought to consider doing other things (second job or whatever) to avoid the hit and the loss of your compounding if you possibly can. $1,000 left alone for 40 years will grow to more than $100,000 in a growth stock fund.
490116
Tax - Technically yes, if there is a capital gain above your annual exemption for the year based on the market value of the shares at the date of transfer. However, even if there is a gain you may be able to defer it (broadly, if your daughter is UK resident and it is a gift of a business asset - basically a personal company and not shares in a plc).  \nThe definitions to qualify for the relief are pretty specific, so if the gain is likely to be over GBP8,800 (2006/07 rate) then you need to get detailed advice.  If your gains for the year (including any other chargeable disposals in the same tax year) are below that level, no tax.\n\nStamp duty - last I knew, you technically did have to pay stamp on such a transaction, but as it is a gift it would only have been 50p.  However, the stamp duty was completely revamped a couple of years ago and I do not recall how the new regime applies to gifts of shares. Hopefully someone else can help with that.\n\n\nEdit :  Sloop John, you are mixing inheritance tax exemptions and capital gains tax rules together!
632342
If the options are in-the-money, you should certainly exercise them.  \n\nThe options you have are either qualified or non-qualified options.  If they are nonqualified, then the fact that you are subject to the AMT doesn't matter.  You have to pay ordinary income taxes on the difference between the fair market value and the strike price.  Let's look at an example.  Suppose you can buy the stock at $10 per share and it is trading at $22 per share.  $10 is the strike price and $22 is the fair market value.  You have to pay ordinary income taxes on (22-10) = $12 per share.  $22.00 now becomes your tax basis.  Let's say you hold onto the shares for two years and sell at $40.  You have to pay long-term capital gains taxes on the gain -- and the gain is $40 minus your tax basis of $22 -- so you pay capital gains taxes on a $18 gain per share.\n\nNow let's suppose that they are qualified options (part of an employee option plan open to everyone).  If you weren'r subject to the AMT, then you have no taxable event until you sell the stock.  When you do, you are subject to capital gains tax on the difference between what you sell it at and what you bought it at.\n\nHowever, you are subject to AMT taxes.  This means that when you exercise the options, you have to pay taxes at the AMT rate on the difference between the fair market value and the strike price.  This is just like the non-qualified case -- except that you pay at the 20% AMT rate rather than the higher ordinary tax rate (which could be as high as 39.6%).  The fair market value (price at exercise) becomes your tax bases.  When you eventually sell the stock, any capital gains is taxed at the long or short term capital gains rate where the gain is the difference between the selling price and your tax basis.\n\nHolding onto the stock has risks.  It is possible for the stock to fall below the value of the owed taxes.  This happened to a lot of people during the 2001 burting of the internet bubble.
412715
Yes.  This was a campaign point for W in his first election - double taxation of dividends.  The company pays its taxes and distributes the left over, then the investor has to pay taxes on those earnings.  Bush wanted to get rid of that, but the Dems threw in the whole "tax breaks for the rich" and it didn't go through.
1082372
Since a regular IRA has tax-deffered dollars, you are taxed on all of it if you withdraw it and don't roll it over into another IRA of any type.  You also are penalized 10% of the value of the account if you are younger than 59 1/2.
594822
A charitable remainder trust only gives you an income tax deduction for the estimated part of the trust fund that will go to charity. If you want you can contribute to a 529 plan--these currently are tax-deferred and allow withdrawals tax-free to pay for qualified education expenses. (Whether this treatment will continue will depend on congress as the legislation authorizing the tax-free withdrawals expires in 2011.)
488412
In Share market you are directly buying shares (stocks) of a particular company and you become the stock holder.\n\nIn Mutual Funds you are giving the money to a fund company and they are investing on your behalf. In this case you are not issued any share but you are issued units which you can track through the Fund Company's NAV. Secondly mutual fund companies invest in different companies and are not just limited to one single comapny so the risk amount is quite less.
91825
ANy money awarded by the Government is tax free.  only in the portion.\nIf the state awarded it, then it is STATE tax free.
827260
Debt - Interest payments are tax deductable\nEquity - Dividend payments are not tax deductable
582371
As lovely an idea that it, no it won't avoid any taxes. The only way to avoid the capital gains or ordinary income taxes on ivestments is for you to invest in a tertirement account like an IRA or Roth IRA or employee benfit plan.\n\nIt sounds like you own a business. Speak with your CPA to find out which plan is best for you. SOme examples are\n\nSEP\nSimple SEP\nSimple IRA\nSimple 401k\nRoth IRA\nTraditional IRA\n\nAS you can see, there are alot of choices. Each one has its benefits and srawbacks. Some are tax free and some are just tax deferred until retirement.\n\nIf these plans arent an option for you, look into index funds, they typically have low if not any turnover. \n\nTurnover=capital gains=taxes\n\nGood luck
432808
what interest are expecting from worker's comp?  it's a disability check...not regular income...or checking account...and it's tax-free money...not sure what you're looking for.
412228
Yes, but especially if you are raising $1M+ you risk running afoul of the SEC if you don't prepare the offering in accordance with their registration requirements or exemptions (Reg D). (Basically, you don't want to register with the SEC, so you need to qualify under one of the exemptions.) Also be sure you're complying with state laws. If it's under $1M (exempt under rule 504) you probably don't have to worry about it, but run it by a securities lawyer anyway, and don't forget the state laws. Good luck.
890640
Dave, your principles bear no interest for me ;-)\n\nGetting back to the question, an interest-free loan to charity is not deductible.  There are a number of reasons for this, but just suppose your benefactor did not loan you the money, but invested it himself and donated the income to your foundation.  He would have offsetting items of income and deduction for zero net effect on taxable income.  The same result arises from the interest free loan:  No income, no deduction.\n\nAnd it's principAL, not principLE, in case you missed the joke.
863291
Effect on company:\n\nLower interest costs, shift of financing over to equity from debt\n\nEffect on shareholders:\n\nDilution to old shareholders, possible change in control due to change in percentage ownerships and/or shift in eligibility for directorship\n\nEffect on holders of convertable bonds:\n\nStop receiving coupon payments (if there were any), start receiving dividends (if applicable),now an equity owner, potentially eligible for directorship (if ownership is high enough)