Atlanta CPA on How to Utilize Investments to Your Best Advantage
Atlanta CPA on How to Utilize Investments to Your Best Advantage
Especially in light of these economic times being a wise steward and investor are even more critical. It is prudent to keep in mind when investing the difference between short and long-term capital gain rates as often the difference between paying a lesser amount and a larger amount can be determined on the holding period of stock.
Investment Period. Investments held for more than one year are taxed at long term capital gain rates vs. higher ordinary income tax rates for individuals. Also there are some stock investments which pay out dividends, which though does create a cash flow, will require the taxpayer/investor to pay taxes thereon in the year that dividends are received.
Tax Treatment. Also it is prudent to learn if any of the dividends will be determined by tax law standards to be “qualified” which will result in a lesser tax rate being used than ordinary dividends. Also depending on your tax bracket it might be wise to consider investing in investments which accrue and pay tax exempt interest. If you have net long-term capital gains the maximum tax rate, under present law, is 15%.
Loss Deduction. If you have a net long-term capital loss you can deduct these monies reducing your taxable income by up to $3,000 per year with any excess being able to be rolled forward. If you have a large tax loss, as many of us do, it is a good opportunity to consider selling a stock that has risen to value to legally shelter the gain with the Carry-forward.
Investment Sensitive. However great caution should be used here as I would never recommend selling a good stock, only one that you feel has peaked, relative to other investment properties. Also it is wise to keep in mind that the taxable/deductible component of a stock is only determined when a stock is sold, and is not based upon solely the decline in value.
When planning for one’s long term future I suggest that you retain a wise and experienced Certified Financial Planner (CFP) and a Certified Public Accountant (CPA) who can work together as a team to plan for your long term financial needs.
John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.
“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31
Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html
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