The following tax information really only applies
Post# of 4861
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Posted On: 01/10/2021 10:16:53 AM
The following tax information really only applies to UNVC investors over the age of 65, and intending to cash out modestly should they experience a windfall in capital gains.
Could your capital gains bill be lower than you think? Most people are surprised to learn that instead of a uniform rate, there are actually three federal long-term capital gains tax rates:
If you’re in the top marginal tax bracket of 39.6% (e.g., those filing jointly with incomes of $470,701 and above, or singles making $418,401 and above)
15% if you’re in all other tax brackets except the bottom two (e.g., those with taxable incomes of $75,901 to $470,700 for those filing jointly or $37,951 to $418,400 for singles)
0% if you’re in the lowest two tax brackets (e.g., taxable income under $75,900 for those filing jointly or $37,950 for singles)
I should note that should we be blessed with a very large profit in the range of what many seem to think, UNVC investors will be at taxed at the very highest tax rate should they decide to cash out more than about $490,000 in any single year.
The magic number is $75,900 for couples, with a lower threshold for other filing statuses (Single, Head of Household, etc.). Because capital gains taxes are based upon ones taxable income rather than your gross income, more people enjoy the 0% rate than you might think.
Again, should UNVC investors enjoy anywhere near the $5-$10 share price often cited, they will automatically be at the highest tax bracket, and that bracket is likely to increase under a Biden administration.
For example, assume a retired couple has $90,000 of gross income. If both spouses are over age 65, their standard deduction and personal exemptions total $23,300, bringing their taxable income down to $66,700. This couple would therefore qualify by virtue of being in one of the two lowest tax brackets.
https://www.kiplinger.com/article/retirement/...-taxe.html
Again, if investors should have an enormous capital gains from cashing out their UNVC shares, you will be taxed at the highest rate the new administration decides to mandate. So when I see people posting about $5 per share, that means a person with five million shares will suddenly be worth $25,000,000 (that in fact is twenty five million dollars for those having trouble imagining that kind of wealth).
Thus, while many are likely to cash out some amount of shares to improve their daily lives and pay off bills, it may be prudent to restrain oneself. I have no idea if this windfall some predict will in fact come true, but it certainly could, and one should be prepared for the consequences when it does. Money often is a wonderful tool that if used wisely can improve ones life. However, their are pitfalls that can make one miserable as well. Lets hope for the wealth, and lets hope it improves everyone's lot in life.
Perhaps many may regret that nothing happened with UNVC until the new year.
Kgem
Could your capital gains bill be lower than you think? Most people are surprised to learn that instead of a uniform rate, there are actually three federal long-term capital gains tax rates:
If you’re in the top marginal tax bracket of 39.6% (e.g., those filing jointly with incomes of $470,701 and above, or singles making $418,401 and above)
15% if you’re in all other tax brackets except the bottom two (e.g., those with taxable incomes of $75,901 to $470,700 for those filing jointly or $37,951 to $418,400 for singles)
0% if you’re in the lowest two tax brackets (e.g., taxable income under $75,900 for those filing jointly or $37,950 for singles)
I should note that should we be blessed with a very large profit in the range of what many seem to think, UNVC investors will be at taxed at the very highest tax rate should they decide to cash out more than about $490,000 in any single year.
The magic number is $75,900 for couples, with a lower threshold for other filing statuses (Single, Head of Household, etc.). Because capital gains taxes are based upon ones taxable income rather than your gross income, more people enjoy the 0% rate than you might think.
Again, should UNVC investors enjoy anywhere near the $5-$10 share price often cited, they will automatically be at the highest tax bracket, and that bracket is likely to increase under a Biden administration.
For example, assume a retired couple has $90,000 of gross income. If both spouses are over age 65, their standard deduction and personal exemptions total $23,300, bringing their taxable income down to $66,700. This couple would therefore qualify by virtue of being in one of the two lowest tax brackets.
https://www.kiplinger.com/article/retirement/...-taxe.html
Again, if investors should have an enormous capital gains from cashing out their UNVC shares, you will be taxed at the highest rate the new administration decides to mandate. So when I see people posting about $5 per share, that means a person with five million shares will suddenly be worth $25,000,000 (that in fact is twenty five million dollars for those having trouble imagining that kind of wealth).
Thus, while many are likely to cash out some amount of shares to improve their daily lives and pay off bills, it may be prudent to restrain oneself. I have no idea if this windfall some predict will in fact come true, but it certainly could, and one should be prepared for the consequences when it does. Money often is a wonderful tool that if used wisely can improve ones life. However, their are pitfalls that can make one miserable as well. Lets hope for the wealth, and lets hope it improves everyone's lot in life.
Perhaps many may regret that nothing happened with UNVC until the new year.
Kgem
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