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Old 09-20-2018, 06:21 AM
 
1,340 posts, read 296,325 times
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Quote:
Originally Posted by lchoro View Post
Very easy. Get into a low enough tax bracket of 15 percent or less for earned income. .
lol. This reminds me of the old Steve Martin bit about how to be a millionnaire and never pay any taxes. He says 'First, you get a million dollars...'

You sir, have no idea what you are talking about. Please tell me how to get my husband's salary and bonus into the 15% tax bracket. Waiting.....
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Old 09-20-2018, 07:41 AM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
Reputation: 14942
Quote:
Originally Posted by lchoro View Post
Very easy. Get into a low enough tax bracket of 15 percent or less for earned income.
Oh - there's a solution - make less money so you're in a low tax bracket. Riiiiiiight.
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Old 09-20-2018, 07:44 AM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
Reputation: 14942
Quote:
Originally Posted by lieqiang View Post
Can confirm. We live on divs and cap gains, pay approximately $0 in federal income taxes.

Only reason over $0 is minor reconciliation due to estimate versus actual annual income for ACA.
Sooo... if I have $250,000 per year in taxable dividend income, and $10,000 in taxable interest income, and another $125,000 per year in short term capital gains from the sale of equities, and another $100,000 per year in long-term capital gains from selling equities...

Just how does that work?
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Old 09-20-2018, 08:07 AM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
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Quote:
Originally Posted by Returning2USA View Post
I assume most of us are familiar with this, but here's a short clip:
Just another political attack, full of inaccuracies, intentionally ignoring logic, ignoring the lessons of economics, and twisting even simple if-then-else analysis, engineered to rile up the simple minded and to engender tribal conflict.
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Old 09-20-2018, 09:48 AM
 
7,008 posts, read 6,638,516 times
Reputation: 5284
Quote:
Originally Posted by Grlzrl View Post
lol. This reminds me of the old Steve Martin bit about how to be a millionnaire and never pay any taxes. He says 'First, you get a million dollars...'

You sir, have no idea what you are talking about. Please tell me how to get my husband's salary and bonus into the 15% tax bracket. Waiting.....
You and the other missed the whole point. It is about how income is distributed by the business entity and the different ways in which the tax code treats income. There are different ways to receive income from an enterprise that you control. If you have employees, you can do the same for the key employees.

There are also ways to do it as a passive investor. If you plan to sell a large amount of stock and you don't want to pay taxes, you can buy protective puts to avoid selling them until the gains are classified as long-term. It results in a much lower tax rate, even zero percent, while you get to write off the minimal cost of the insurance to protect the gains.

Last edited by lchoro; 09-20-2018 at 10:27 AM..
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Old 09-20-2018, 12:15 PM
 
3,779 posts, read 7,169,582 times
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Quote:
Originally Posted by stanley-88888888 View Post
my cousin married a venezuelan. their fuel is like 50¢ a gallon. venezuela seems fairly self-sufficient and mostly middle-class ?

It used to seem so. Not anymore. I recently read an interesting article, and wish I knew where. Maybe in National Geographic.Part of their problem is that oil prices dropped a few years ago, and that's what their economy was based on. The bigger problem is that the government had taken control of the oil industry and all of the decisions. The oil, though plentiful, is not the type easily extracted, and the government removed the very ones who knew how to do it.



Venezuelan people are hungry, and Venezuelan farmers are struggling. They struggle to buy fertilizer for their crops and feed for their animals. Then they have to sell what little they can produce at low, controlled prices. The article I read gave the example of a chicken farmer who used to have a huge number of chickens producing many eggs. Because he can't afford feed, he now has only a small number of chickens, and the eggs are sold at a loss.



Many schools are closed. Teachers don't make enough money to buy food. (Teachers should be "middle class, I figure.") When school is in session, much of the time there is no lunch served. Parents don't send their hungry children because they wouldn't be able to learn anyway. Here is an article that tells about the current state of education: https://www.reuters.com/article/us-v...-idUSKBN1HW1KL


Toward the end it mentions a baker whose monthly wage is $5. That's five dollars for a month of work. (That's ten gallons of that cheap gasoline. If my income were ten gallons of gas, I'd make about $31/month.) On that he supports his wife and children.


Here is one about the current flood of people trying to leave Venezuela: https://www.washingtonpost.com/news/...=.6e28eaece6d9


And a little bit of information from wikipedia: in 2017, Venezuela's poverty rate was about 80%.
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Old 09-20-2018, 03:25 PM
 
4,735 posts, read 2,263,083 times
Reputation: 8806
Quote:
Originally Posted by SportyandMisty View Post
Sooo... if I have $250,000 per year in taxable dividend income, and $10,000 in taxable interest income, and another $125,000 per year in short term capital gains from the sale of equities, and another $100,000 per year in long-term capital gains from selling equities...

Just how does that work?
I'm not sure I understand your question. Someone pointed out that if you're in the 15% tax bracket (which is to about 90k for a married couple filing jointly) then dividends and capital gains are taxed at 0%. I verified this is correct, since our income is from investments and we do indeed pay no federal income tax.

Now you want me to tell you how someone who is not in the 15% tax bracket takes advantage of this? I never claimed they could.

Quote:
Originally Posted by SportyandMisty View Post
Just another political attack, full of inaccuracies, intentionally ignoring logic, ignoring the lessons of economics, and twisting even simple if-then-else analysis, engineered to rile up the simple minded and to engender tribal conflict.
At least the guy resembled Norm Peterson from Cheers.

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Old 09-21-2018, 12:16 PM
 
1,340 posts, read 296,325 times
Reputation: 1138
Quote:
Originally Posted by lchoro View Post
You and the other missed the whole point. It is about how income is distributed by the business entity and the different ways in which the tax code treats income. There are different ways to receive income from an enterprise that you control. If you have employees, you can do the same for the key employees.

There are also ways to do it as a passive investor. If you plan to sell a large amount of stock and you don't want to pay taxes, you can buy protective puts to avoid selling them until the gains are classified as long-term. It results in a much lower tax rate, even zero percent, while you get to write off the minimal cost of the insurance to protect the gains.
You might know a little about this stuff. Enough to be a bit dangerous. You can't time your stock option sales to take advantage of any capital gains because that part is taxed as ordinary income. The only part that is even taxed as capital gains is if you take possession of the shares and then hold. Most people don't do this because then they are overweighted in their company. The full amount is taxable when you sell. So, let's say you have $5000 in stock options vesting tomorrow. Then you sell next week. You pay full fare (ordinary income tax rates) on the $5000. If there is a gain above the $5000, you pay short term cap gains on that amount. If you hold it a year, you pay long term capital gains.
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Old 09-21-2018, 12:18 PM
 
1,340 posts, read 296,325 times
Reputation: 1138
Quote:
Originally Posted by newp View Post
That's nice. I was talking about the person you responded to. Which is why I used the word "other poster" as opposed to "poster." Perhaps you should have been studying a bit more reading comp while doing your CPA.
lol. Fair enough. What's funny is that my husband IS a CPA AND kinda knows how taxes work. I am not a CPA and I know a lot more than he does about it all. He doesn't do tax returns. He does corporate.

(Most likely one of my offspring was buzzing in my ear while I was typing).
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Old 09-21-2018, 03:30 PM
 
7,008 posts, read 6,638,516 times
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Quote:
Originally Posted by Grlzrl View Post
You might know a little about this stuff. Enough to be a bit dangerous. You can't time your stock option sales to take advantage of any capital gains because that part is taxed as ordinary income. The only part that is even taxed as capital gains is if you take possession of the shares and then hold. Most people don't do this because then they are overweighted in their company. The full amount is taxable when you sell. So, let's say you have $5000 in stock options vesting tomorrow. Then you sell next week. You pay full fare (ordinary income tax rates) on the $5000. If there is a gain above the $5000, you pay short term cap gains on that amount. If you hold it a year, you pay long term capital gains.
You don't get taxed as the options vest. It is only taxed when you decide to exercise the option. It is a small fraction of the stock value.

The key consideration is when the gains on the held securities, which were bought at a discount, are to be realized with respect to the tax calendar for the purpose of minimizing the tax rate and entering into the protective put positions to postpone the sale until the desired date. The decision to let the put contract expire or to sell it to collect the premium will come the week the option expires or earlier if you decide to sell out of the stock in the new year before the options expiration date.

Last edited by lchoro; 09-21-2018 at 04:32 PM..
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