Home » Accounting Articles » James S. Quay and Perimeter Wealth Management Group: About Capital Gains Tax by James S. Quay
James S. Quay and Perimeter Wealth Management Group: About Capital Gains Tax by James S. Quay
James S. Quay of Perimeter Wealth Management is always asked various qurstions related to the subject of capital gains, and what exactly they are. In this article, James S. Quay talks about the basics that you will need to know about capital gains.
ATLANTA, GA, May 05, 2010 /Accounting PR News/ -- James S. Quay and Perimeter Wealth Management Group: About Capital Gains Tax by James S. Quay
Many people ask Perimeter Wealth Management Group, "What is a capital gain tax?" Well, according to James S. Quay of Perimeter Wealth Management Group, a capital gains tax, otherwise known as the CGT, is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. James S. Quay elaborates on the fact that the most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Keep in mind, not all countries implement a capital gains tax and Perimeter Wealth Management Group explains that most have different rates of taxation for individuals and corporations.
Perimeter Wealth Management Group recognizes that for equities an example of a popular and liquid asset is the fact that each national, or state, legislation has a large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. Even so, James S. Quay explains that these fiscal obligations may vary from jurisdiction to jurisdiction because, among many other reasons, it could be assumed that taxation is already incorporated into the stock price through the different taxes companies pay to the state, or that tax free stock market operations are useful to boost economic growth.
In the United States, James S. Quay of Perimeter Wealth Management Group notes that individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income. With this in mind, the tax rate for individuals is lower on "long-term capital gains," which James S. Quay explains are gains on assets that had been held for over one year before being sold. The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets. Perimeter Wealth Management Group adds on that short-term capital gains are taxed at a higher rate: the ordinary income tax rate. The reduced 15% tax rate on eligible dividends and capital gains, previously scheduled to expire in 2008, has been extended through 2010 as a result of the Tax Increase Prevention and Reconciliation Act signed into law by President Bush on May 17, 2006 (P.L. 109-222). Having been generally 20%, in 2011 these reduced tax rates will "sunset," or revert to the rates in effect before 2003.
The IRS allows for individuals to defer capital gains taxes with tax planning strategies such as the structured sale (ensured installment sale), charitable trust (CRT), installment sale, private annuity trust, and a 1031 exchange. James S. Quay and Perimeter Wealth Management Group believes that the United States is unlike other countries in that its citizens are subject to U.S. tax on their worldwide income no matter where in the world they reside. Therefore U.S. citizens find it difficult to take advantage of personal tax havens. Although there are a few offshore bank accounts that advertise as tax havens, U.S. law requires reporting of income from those accounts and failure to do so basically constitutes tax evasion.
Perimeter Wealth Management Group ("PWM") is a comprehensive wealth management corporation created from the synergy of over 100 years of Atlanta's premier legal, tax and financial expertise brought together under one roof to serve our North Metro Atlanta clients in the most cost and time efficient manner possible. We offer workshops regularly at Dunwoody/Sandy Springs area steakhouses to educate the public of our services. Please click on the Dinner Workshops site to see the dates of upcoming events. To contact James S.Quay at Perimeter Wealth Management Group call (678) 638-6360.
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James S. Quay Perimeter Wealth Management Grou
Perimeter Wealth Management
James S. Quay
7000 Central Parkway Suite 1360
Atlanta, Georgia
United States 30328
Voice: (678) 638-6360
Fax: (678) 680-4989
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