Everyone needs to speak to a tax accountant as there are Capitol Gains Federal Taxes + State Taxes in most states.
I live in California and CA State Tax = almost 11%
Most general Capital Gains rules:
1) Hold a stock for 1 year + 1 day and sell = 20% Capital Gains Tax (i,e, a flat rate)
2) Hold a stock for less than 1 year + 1 day = taxed at the rates based on income and in our case it will be 37% (since we will be selling for Multi-Dollars)
So if I hold any shares for less than 1 year - I will effectively pay 50% in taxes !!
When making Charitable Donations - make sure to get a letter explaining the project or projects that our donations are being used for in addition to the copy of the check or credit card payment as since these Charitable Donations are going to be huge - the IRS is going to want proof that is was a legitimate Charitable Donation i.e. without receiving anything in return as opposed to using a Charity to "launder money" to reduce taxes.
Before gifting shares - speak to a tax account as there are "Gift Taxes" in the USA i.e. if we give $100,000 to someone in need and they are not a Charity - this person will have to pay a "Gift Tax" on the money received.
YES, this is double taxation and I will not get started on the evils of Double Taxation in the USA.
Any amount of $10,000 or more deposited is subject to scrutiny:
When do banks report deposits to IRS?
Banks and credit unions are required to report a cash deposit of $10,000 or larger. In addition, if two transactions within a 12-month period seem related and their total exceeds $10,000 they must be reported.
All of us need an experienced Tax Accountant who has clients with extremely large portfolios so that we are protected by knowing exactly how to use our money and exactly what all the tax implications are.
Any shares sold in December 2019 are subject to taxes for the 2019 Tax Year. (or tax loss)
Any shares sold in January 2020 are subject to taxes for the 2020 Tax Year and hence effectively we can use "Uncle Sam's Money" for 2020 before having to pay the taxes. Most important, we still do owe all the tax money so we cannot spend it all without paying the taxes and for some of us, it may be suitable to open a special savings account in the bank with the money we owe for taxes or to pay quarterly projected taxes or pay the taxes immediately so that it does not happen that at the end of December 2020, we suddenly have NO money to pay the taxes as the tax bill will be in the millions of dollars for many of us.
GLTA of Us.
I live in California and CA State Tax = almost 11%
Most general Capital Gains rules:
1) Hold a stock for 1 year + 1 day and sell = 20% Capital Gains Tax (i,e, a flat rate)
2) Hold a stock for less than 1 year + 1 day = taxed at the rates based on income and in our case it will be 37% (since we will be selling for Multi-Dollars)
So if I hold any shares for less than 1 year - I will effectively pay 50% in taxes !!
When making Charitable Donations - make sure to get a letter explaining the project or projects that our donations are being used for in addition to the copy of the check or credit card payment as since these Charitable Donations are going to be huge - the IRS is going to want proof that is was a legitimate Charitable Donation i.e. without receiving anything in return as opposed to using a Charity to "launder money" to reduce taxes.
Before gifting shares - speak to a tax account as there are "Gift Taxes" in the USA i.e. if we give $100,000 to someone in need and they are not a Charity - this person will have to pay a "Gift Tax" on the money received.
YES, this is double taxation and I will not get started on the evils of Double Taxation in the USA.
Any amount of $10,000 or more deposited is subject to scrutiny:
When do banks report deposits to IRS?
Banks and credit unions are required to report a cash deposit of $10,000 or larger. In addition, if two transactions within a 12-month period seem related and their total exceeds $10,000 they must be reported.
All of us need an experienced Tax Accountant who has clients with extremely large portfolios so that we are protected by knowing exactly how to use our money and exactly what all the tax implications are.
Any shares sold in December 2019 are subject to taxes for the 2019 Tax Year. (or tax loss)
Any shares sold in January 2020 are subject to taxes for the 2020 Tax Year and hence effectively we can use "Uncle Sam's Money" for 2020 before having to pay the taxes. Most important, we still do owe all the tax money so we cannot spend it all without paying the taxes and for some of us, it may be suitable to open a special savings account in the bank with the money we owe for taxes or to pay quarterly projected taxes or pay the taxes immediately so that it does not happen that at the end of December 2020, we suddenly have NO money to pay the taxes as the tax bill will be in the millions of dollars for many of us.
GLTA of Us.
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