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20 Cards in this Set
- Front
- Back
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Taxes on the money we make are commonly called _________ taxes.
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Income
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Taxes on money you spend are commonly called _______ taxes.
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Sales
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Income tax is the tax on the money you make. Sales tax (or excise tax) is the tax on the mney you spend. What is the third type of tax you will see?
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Property tax - the tax on the things you own. Your Assets
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When speaking of income taxes, each person is taxed according to their level of income. This is your tax __________.
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Bracket
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When a corporation pays dividends it pays them only after all the taxes have been paid. Is the money now tax exempt to you?
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NO! You must pay taxes too. It is now income to you.
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All cash dividends received are taxable to the recipient. Dividend received from common stock are taxed as _______ _____
_______ ________. (15%max) |
Long term capital gain
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All interest received (other than on muni securities), is taxable as __________ income.
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ordinary income.
(Whatever bracket you are in.) |
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When a security rises in value or appreciates, it is not taxable until you sell it. This rise is called _________ ______.
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Paper Profit
(or unrealized profit) |
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When a security is sold at a profit it is now known as a
__________ ________ _____. |
Realized Capital Gain
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If a security is held for 12 months or less and is sold for a profit the profit is call a ______ ______ _______ ____.
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Short term capital gain
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A person holding a security for a period of 12 month and 1 day or longer will realize a ______
_____ __________ gain. |
Long term capital gain
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Short term gains are taxed at one rate?
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ordinary income rate
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Long term capital gain is taxed at?
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max rate of 15%
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Capital losses can be fully deducted from taxable income to the maximum net annual deduction of _________.
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$3,000.00
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The rule that states that you may not earn a tax benefit from a selling loss if you reqcquired that security or one substantially identical to it within a 30 day period prior or following the loss.
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Wash Sale Rule
(Note: this rule covers a 61 day period.) |
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What happens if you violet the wash sale rule?
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The loss you just "washed out" is added to the price of your new purchse price.
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The IRS Code allows a $_______ gift tax exclusion per person.
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$11,000.00
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How many $11,000.00 tax excluded gift can you give per year?
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Unlimited as long as it is one per person.
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A husband and wife can give up to $__________ worth of gifts to any one recipient in a year, gift tax free.
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$22,000.00
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If a gift is given in excess of $11,000.00 dollars what will happen?
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The donor will have to pay a gift tax on the amount over the $11 thousand.
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