Had an eye-opening meeting with the accountant who
Post# of 75381
(Total Views: 417)
Posted On: 03/24/2017 8:04:03 PM
Had an eye-opening meeting with the accountant who does my taxes.
We were talking about capital gains. In Canada If I had a capital gain of $20,000 for example, I would be taxed on 50% of that gain---so I would pay taxes on $10,000.
I had her use all my income figures from 2016 and put in a hypothetical $20,000 capital gain.
She did all the calculations and said I would be paying $16,000 in taxes. Holy crap!
What happens is, your capital gains is tossed in with all your other income and that determines your tax bracket.
Well I guess that $20,000 shot me up about two brackets and hence the taxes owing.
Taking into account the taxes I would have to pay for pensions and work income anyway, she said I would be wise to set aside 50% of the taxable $10,000.
In other words put five grand away in the bank somewhere in the event I need to pay it back.
The reason I mention this is that if you have a million shares and sell them at a dollar you would have a capital gain(for this stock only)of 1 million dollars.
I don't know what it's like in the USA, but in Canada you would be taxed on $500,000. Just a heads up for those new to the markets and capital gains, be sure to put a good amount away...........like don't spend it all.
My guess is that if it was me I would be paying about $200,000 back in taxes of that $500,000. If I went out and spent it on a big house I would end up selling that house to pay the taxman.
Everybody's situation is different of course. Just something to keep in mind when RMHB heads into the stratosphere. There will be a lot of money on the table and our governments will want their share.
We were talking about capital gains. In Canada If I had a capital gain of $20,000 for example, I would be taxed on 50% of that gain---so I would pay taxes on $10,000.
I had her use all my income figures from 2016 and put in a hypothetical $20,000 capital gain.
She did all the calculations and said I would be paying $16,000 in taxes. Holy crap!
What happens is, your capital gains is tossed in with all your other income and that determines your tax bracket.
Well I guess that $20,000 shot me up about two brackets and hence the taxes owing.
Taking into account the taxes I would have to pay for pensions and work income anyway, she said I would be wise to set aside 50% of the taxable $10,000.
In other words put five grand away in the bank somewhere in the event I need to pay it back.
The reason I mention this is that if you have a million shares and sell them at a dollar you would have a capital gain(for this stock only)of 1 million dollars.
I don't know what it's like in the USA, but in Canada you would be taxed on $500,000. Just a heads up for those new to the markets and capital gains, be sure to put a good amount away...........like don't spend it all.
My guess is that if it was me I would be paying about $200,000 back in taxes of that $500,000. If I went out and spent it on a big house I would end up selling that house to pay the taxman.
Everybody's situation is different of course. Just something to keep in mind when RMHB heads into the stratosphere. There will be a lot of money on the table and our governments will want their share.
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