Re: [The_Intelligent_Investor] Changes to the Intelligent

I can sell them, capture the losses, and buy something else that would allow me stay invested. I just have to watch out for the wash sale rule. Capital losses can be used to offset capital gains, and ordinary income up to $3000.
Mutual fund distributions of tax-free municipal bond income are tax-free to the shareholder. Taxable distributions can be either ordinary income or capital gains, depending on how the fund earned those distributions.
The remaining gain ($80000) would be taxed as a long term capital gain when you decided to liquidate it, not ordinary income. That could be the difference between 15% and 35% in taxes, depending on your tax bracket. Warning!
In that event, the mothers low $70000 basis would carry over to the children and when they sold the property they would incur a substantial capital gain for income tax purposes. The advantage of the step up in basis is magnified with
Every time tax legislation is approved in Washington DC, the federal government is essentially recalibrating their ownership percentage of your wealth. Most types of earned income, dividends, interest income, and capital gains are all
The remaining gain ($80000) would be taxed as a long term capital gain when you decided to liquidate it, not ordinary income. That could be the difference between 15% and 35% in taxes, depending on your tax bracket. Warning!
Mutual fund distributions of tax-free municipal bond income are tax-free to the shareholder. Taxable distributions can be either ordinary income or capital gains, depending on how the fund earned those distributions.
For example, many clients most significant assets are tax-qualified plans (such as IRAs, 401(k)s and pension plans). Because these assets are Income in Respect of a Decedent (IRD), they will be subject to ordinary income tax when