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1

If your total income is below a certain limit, long-term capital gains are taxed with 0% (again, up to a certain limit). Not quite. If your taxable income is less than the top end of the 12% bracket (for 2019 $39,475 for single or MFS, $52,850 for HoH, $78,950 for MFJ or widow(er)) then any net longterm capital gains (realized and thus reported, as noted in ...


0

If you have your investments in a US brokerage, then they will probably send a form to the IRS each year on your activity. Since you haven't sold your investments, there are no capital gains to worry about. Just the dividend income. I believe you have to earn at least $400 in dividends for the IRS to even be interested. The tricky part will be when you ...


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This artile: The Run-Up Before Ex-Dividend Date about the may be of use for you. I am not advocating or confirming the conclusions but the logic is relevant: Price anomaly: the price of a dividend-paying stock tends to drift up before the ex-dividend date. At the aggregate level, this upward drift takes place throughout the entire period from ...


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I think there isn't a definite answer on how much exactly the share of a specific stock price drops on dividend-ex day, at least there might be a statistical answer. I've seen a couple of quite old studies (starting from 1960's - maybe you refer to them in your initial post?) which claim that there is difference between the marginal price drop and the ...


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I believe long time ago the stock price did not drop as much as the dividend but investment firms started taking advantage of this so now it could very well be they on average do drop as much as dividend. The price drop occurs on the ex-dividend date. You could run a study to see.


6

Yes. that's exactly what the article implies. I'd highly suggest that someone in such a situation get a copy of tax software as soon as it comes out, usually near Black Friday (the day after Thanksgiving). Fill it out, with all the solid data you have, and then add the cap gain to see the impact. There may be no need to split the gain, but either way, it ...


2

Let's make some simplifying assumptions. House prices appreciate uniformly. That is, we don't need to model whether the house you'd buy next appreciates faster or slower than the one you're thinking of selling. For this exercise, call the capital gains exclusion amount $E and your resulting tax benefit $B. You can use the $500k figure or $250k figure or any ...


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It seemed to me that OP was asking if there's a breakeven point to be aware of, regarding selling each time the $500K gain is reached. It all depends on the sale price of your house and the purchase price of your new home, since you pay half the 6% commission on selling your home, and half the 6% commission on purchasing your new home (which is an expense ...


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In this situation, does it make sense to sell your house and buy a new one so that you can continue to exclude capital gains on your new house? The best, simplest and most obvious way to minimize CG taxes is to stay in your home. That way you pay zero taxes. When you die, the house becomes part of your estate (even if no one inherits the house), which ...


1

For simplicity let's consider a single share that you sell for $120, 5 years from now. This is qualifying disposition, but assume for a minute it was not. In that case, you'd owe regular income tax on the discount of $32 ($100 - $80 x 85%), and long-term capital gains tax on the remaining $20 ($120 - $100). But since it is a qualifying disposition, more of ...


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The long-term rates are based on your taxable income. This includes your net capital gain (or allowed capital losses) from both short and long-term positions. First you'll calculate your net capital gain/loss for short-term and long-term separately, then you add them together to see how much they contribute to your taxable income (here losses on one would ...


2

I assume that when sold, these were OTM covered calls and now you have a large gain on the stock? Just checking because if you sold deep ITM calls at the outset, there wouldn't be a large taxable gain unless the stock had already appreciated a lot. As for the IRS, gains and losses are reported in the year that they occur. You cannot back date a transaction ...


4

No, the IRS expects you to report the gains/losses in the year they occurred. Your brokerage will report this to the IRS in the proper year, so you'd have issues from the jump if you tried to claim the gains for the prior year. Note that the $39,375 threshold for the 0% long-term capital gain rate is based on taxable income (AGI - deductions), so you can ...


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To start, I'd offer some color coding changes: Column F "Purchase cost" should be red since it's a debit Column G "Sale Proceeds" should be blue since it's a credit Column J "Taxable Gain" should be blue for gains and red for losses In the USA, there are 3 ways to determine cost basis (I don't know if these apply to you in the UK): Average Cost FIFO Lot ...


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