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If there really was no real price change due to run up and auto adjustment down netting out there would be no need for open orders to be automatically reduced when cash dividends payout
This is false. You can not produce anything that would factually support your assertion as it doesn't occur
Why would you buy it for 1100? Assuming no changes in the market you will have 100.00 dividend and a 900.00 share of stock. The exact adjustment in prior close in price matches the amount of the dividend and this is 100% factual where as your assertion that the price runs up by the amount of the dividend is not something you can factual support
That's day trader logic that has nothing to do with investing. If I run across a stock that reliably issues a $100 dividend once a year, you betcha I would snap it up for $1100.
Day traders are not investors, they are vermin who live in the cracks.
retirement accounts are one of the few things that remain taxable since they were never taxed so the estate never paid income tax on the money . you pay tax as you withdraw it .
even roths have mandatory withdrawals by heirs but no taxes if you follow the timetables . you have two methods .
pretty much anything else on the personal side and not business is good to go .
the only real questionable stuff may be things you jointly owned with the deceased .
anyone who inherits anything does not pay estate taxes , the estate pays those taxes if they are due along with an estate closing personal income tax filing ..
Not always. I inherited a Teamsters pension which cashed out, tax-free to me. I also inherited an annuity, which will be tax free until 2017, when it has paid out the total value at the date of death. After that, I have to pay income tax on the money. My father died 15 years before my mother died and their assets were in a trust. This year I had to pay capital gains on the appreciation of my father's half of the trust, though my mother's half was tax-free to me. My state treats capital gains like income, so I also had to pay state income tax on the capital gains.
That's day trader logic that has nothing to do with investing. If I run across a stock that reliably issues a $100 dividend once a year, you betcha I would snap it up for $1100.
Day traders are not investors, they are vermin who live in the cracks.
if the total return sucked regardless of that dividend the stock is a dog . i had one that paid 7% and it was terrible
Not always. I inherited a Teamsters pension which cashed out, tax-free to me. I also inherited an annuity, which will be tax free until 2017, when it has paid out the total value at the date of death. After that, I have to pay income tax on the money. My father died 15 years before my mother died and their assets were in a trust. This year I had to pay capital gains on the appreciation of my father's half of the trust, though my mother's half was tax-free to me. My state treats capital gains like income, so I also had to pay state income tax on the capital gains.
the annuity principal and cashed out pension are all assets of the estate and as long as they were part of the estate and under the limit they should pass tax free . nothing special or unique going on there .
That's day trader logic that has nothing to do with investing. If I run across a stock that reliably issues a $100 dividend once a year, you betcha I would snap it up for $1100.
Day traders are not investors, they are vermin who live in the cracks.
It's not day trader logic it's actual representation of how a dividend works. If a stock is trading at 1000 and pays 100.00 annually, every quarter when the dividend pays the stock price is adjusted down 25.00
So if this magical stock was going ex tomorrow and the price dropped from 1000 to 975, you are telling me you'd pay me 1075 for it when it was trading at 975 just because it's pays 100.00 a year in dividends?
post anything that supports the bolded statement, the truth is it's either always a part of valuation or it isn't and as ex date it's not an increase in value to offset the dividend. The truth is though you can't because you have a simple theory and the market price does not follow your attempted valuation. It simply doesn't work in practice. You should actually track it on a few names and it wouldn't take long to see you are incorrect
And it is moving pockets, a cash dividend reduces the prior close as mandated by the sec, that's a fact. Cash in your pocket equals and exact adjustment lower in value of the amount invested in said company, also a fact
I previously posted the following, and you ignored it. Simple question - is that a legitimate asset pricing model, or isn't it?
Quote:
The most basic valuation method for an investment is to compute the discounted present value of the future cash flows.
Not always. I inherited a Teamsters pension which cashed out, tax-free to me. I also inherited an annuity, which will be tax free until 2017, when it has paid out the total value at the date of death. After that, I have to pay income tax on the money. My father died 15 years before my mother died and their assets were in a trust. This year I had to pay capital gains on the appreciation of my father's half of the trust, though my mother's half was tax-free to me. My state treats capital gains like income, so I also had to pay state income tax on the capital gains.
The annuity was likely non-qualified, which means it's treated just like any other annuity. 401K's and IRAs are Income in Respect of Decedent (IRD), which basically means that it gets taxed on distribution the same way it would have been taxed had the decedent received it. That stuff also has a lot of rules regarding how much must be distributed in what time frames.
Regarding the items received from your father - it sounds like they would have received a step-up in basis at his death, so yes, any income or appreciation after that would be taxable under regular income tax rules (insert "specifics of taxation in that time frame depend on the type of trust it was in, yadda yadda")
There are general rules. In terms of estate taxation, there is usually no tax due unless the decedent had a large ($1M+ in almost all states that have such taxes) to very large (essentially $10M+ at the federal level) estate. Inheritance taxes are only in a handful of states and depend on the relation of the inheritor to the decedent (generally lesser tax issues for children/grandchildren, greater for non-direct line relatives).
In most situations, income taxes are not due on assets received through inheritance at the time of death. There is almost always income taxation applying to 401K/IRA stuff when distributed out (as in, not when it goes to an "inherited IRA", but rather when a distribution is made from that account to the beneficiary). Capital gains and such will be due on sale of inherited assets, but since most will receive a step-up in basis to FMV at date of death, capital gains should be relatively low.
All of that said, there may be issues regarding how to own assets, or options for how to take IRA type assets that will impact when distributions must be made, etc., so even if there is no estate tax liability or immediate income tax liability, talking to a qualified attorney/advisor when inheriting assets is a good idea. There's also non-tax items like "owning that property as a tenant-in-common with a sibling may be a bad idea long term".
Standard disclaimer - all of the above may be completely wrong and made up by me. If you're a millionaire you shouldn't be relying on random intermawebz people for tax advice. Do not taunt Happy fun Ball.
I previously posted the following, and you ignored it. Simple question - is that a legitimate asset pricing model, or isn't it?
You do understand a difference between a model and reality right? If pricing models were reality we would only have one model right? And there really wouldn't be a need for so many exchanges because prices would be so transparent due to the fact that a single pricing model existed and it was also in lockstep with reality.
In theory though you future cash flow for a company say one year out would be relatively the the day before exdate or the day after because youd still be capturing a years worth of cash flow
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