Investment and Finance
The most frequently asked tax questions related to Investment and Finance
My spouse died during the year. What filing status do I use to file my income tax return?
Asked Sunday, September 03, 2000 by an anonymous userCPA Answer:
You have the right to file jointly in the year your spouse died. Include your spouse's income earned only through the date of his or her death. Income earned after his or her death may have to be included on the decedent's estate income tax return which is filed on form 1041. To determine if it is necessary to file this tax return or an Estate 706 return, contact a local CPA.
What is income in respect to a decedent ?
Asked Sunday, September 03, 2000 by an anonymous userCPA Answer:
This refers to any income received on behalf of the deceased after his or her death, which is usually still attributable to his or her Social Security number.
IRA - Due date of contribution
Asked Sunday, September 03, 2000 by an anonymous userCPA Answer:
You must make your contribution by the filing due date of the return (usually April 15), or the date you file the return, whichever is earlier. An extension to file your return does not extend your time to contribute to your IRA.
IRA - Transfer stock and get an IRA contribution
Asked Sunday, September 03, 2000 by an anonymous userCPA Answer:
Contributions to IRAs must be made by cash. Checks and wired funds are considered to be cash.
You may be eligible to borrow the money from the brokerage house against your stock. This is called margin.
In this way you do not have to sell the stock and you can still fund your IRA.
You may be eligible to borrow the money from the brokerage house against your stock. This is called margin.
In this way you do not have to sell the stock and you can still fund your IRA.
IRA - Stock Trader contribution
Asked Sunday, September 03, 2000 by an anonymous userCPA Answer:
IRA and pension deductions are based on earnings.
Earnings are subject to payroll taxes, specifically social security, also referred to as self-employment tax for sole proprietors.
If you are not paying payroll taxes on your trading profits, you are not eligible for an IRA deduction or pension plan.
However, you may qualify for a spousal IRA if you income falls within certain limits.
Earnings are subject to payroll taxes, specifically social security, also referred to as self-employment tax for sole proprietors.
If you are not paying payroll taxes on your trading profits, you are not eligible for an IRA deduction or pension plan.
However, you may qualify for a spousal IRA if you income falls within certain limits.
What is a securities Short Sale?
Asked Sunday, August 27, 2000 by an anonymous userCPA Answer:
A Short Sale, or selling short, refers to when a person sells a stock before he or she owns it.
The person wants the stock price to go down, so it can be bought back at a cheaper price.
When you sell short you must borrow money to cover the sale. Usually, the seller's brokerage firm arranges to borrow stock to make delivery to the buyer until the seller "closes" the position by purchasing stock and turning it over to the brokerage firm.
The person wants the stock price to go down, so it can be bought back at a cheaper price.
When you sell short you must borrow money to cover the sale. Usually, the seller's brokerage firm arranges to borrow stock to make delivery to the buyer until the seller "closes" the position by purchasing stock and turning it over to the brokerage firm.
401(k), 403(b), 457 and TSP plans - Maximum Contribution limits
Asked Friday, August 18, 2000 by an anonymous userCPA Answer:
The limit on employee elective deferrals is $18,000 for 2016.
The catch up contribution limit for employees 50 and over remains unchanged at $6,000.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.
What is a long term capital gain ?
Asked Friday, August 18, 2000 by an anonymous userCPA Answer:
A long-term capital gain is any gain that you receive from the sale of stocks or other investment property which is held for more than one year. If you hold something for 365 days that is still considered short term. It has to be more than one year.
How do I determine the taxable capital gains on my mutual funds that are included in my IRA?
Asked Thursday, August 03, 2000 by an anonymous userCPA Answer:
The good news is that you don't need to compute your gains or losses on mutual funds that are held in an IRA. The bad news is all distributions from deductible IRAs are taxable- as ordinary income - in the year of the distribution. There is no capital gain treatment for gains on investments in an IRA.