WSJ Reporter doing story on Capital Gains Taxes

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WSJ Reporter doing story on Capital Gains Taxes

Postby Mel Lindauer » Thu Feb 14, 2013 1:02 pm

Hi Everyone:

A WSJ reporter is looking to interview some investors who are concerned about (or don't understand) the changes in taxes on capital gains. If you fit that profile (and most probably do) and would like to be interviewed for the story, then contact Laura promptly via her email address at the end of her note. Here's what she's looking for:


Are you an investor who is worried or confused about the 2013 changes in taxes on capital gains? If so, I’d like to hear from you as soon as possible.

The investment tax landscape has changed for 2013, more than many are aware of. There’s a three-tier tax rate plus three back-door taxes, and investors at all levels will be affected, either directly or indirectly. Deferral is more valuable now, as are planning techniques.

I understand the new landscape. But for an article, I would like to hear from “on-the-ground” investors about how they feel about the changes or how they’re reacting to them, especially as markets are high and people may be contemplating taking gains.

Please respond as soon as possible to Laura.Saunders@wsj.com
Best Regards - Mel | | Semper Fi
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Re: WSJ Reporter doing story on Capital Gains Taxes

Postby livesoft » Thu Feb 14, 2013 1:20 pm

This ought to be a good article. Many of us remember the 5-year long-long-term cap gains tax rate of 18% which has been restored. Software like MS Money has distribution categories for short-, mid-, and long-term capital gains, too.

However, it seems like every 5 years there is a new crop of new investors who need articles like this to guide them. Ooops, make that: It seems like every single year there is a new crop of new investors who need articles like this to guide them.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: WSJ Reporter doing story on Capital Gains Taxes

Postby BrandonBogle » Thu Feb 14, 2013 1:35 pm

My understanding of the changes came from http://www.nerdwallet.com/blog/investing/2013/2013-capital-gains-tax-rates-fiscal-cliff-38-net-investment-income/. So I thought capital gains will be based on your earnings (no clue on if that's MAGI, AGI, GI, or whatever) and you get hit with either 0%, 15%, and 20%. Are you saying that now in addition to short-term and "over one year term", there is a "over five year term" category?

If so, then yes, this got confusing as it was very easy before to say "less than one year = marginal tax" and "greater than one year = capital gains tax".
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Re: WSJ Reporter doing story on Capital Gains Taxes

Postby Mel Lindauer » Thu Feb 14, 2013 1:49 pm

BrandonBogle wrote:My understanding of the changes came from http://www.nerdwallet.com/blog/investing/2013/2013-capital-gains-tax-rates-fiscal-cliff-38-net-investment-income/. So I thought capital gains will be based on your earnings (no clue on if that's MAGI, AGI, GI, or whatever) and you get hit with either 0%, 15%, and 20%. Are you saying that now in addition to short-term and "over one year term", there is a "over five year term" category?

If so, then yes, this got confusing as it was very easy before to say "less than one year = marginal tax" and "greater than one year = capital gains tax".


If you have to ask, then it sounds like you might be a prime candidate to be interviewed by the WSJ reporter. Go ahead and contact her.
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Re: WSJ Reporter doing story on Capital Gains Taxes

Postby Mel Lindauer » Thu Feb 14, 2013 1:50 pm

livesoft wrote:This ought to be a good article. Many of us remember the 5-year long-long-term cap gains tax rate of 18% which has been restored. Software like MS Money has distribution categories for short-, mid-, and long-term capital gains, too.

However, it seems like every 5 years there is a new crop of new investors who need articles like this to guide them. Ooops, make that: It seems like every single year there is a new crop of new investors who need articles like this to guide them.


You might want to contact Laura, livesoft, to see if your understanding of the new tax laws is correct.
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Re: WSJ Reporter doing story on Capital Gains Taxes

Postby House Blend » Thu Feb 14, 2013 2:19 pm

The rate structure has gotten more complicated but that doesn't change the basic prinicples.

I don't see much value in an article about people who are confused. A pointer to these wiki articles and the IRS FAQ would be 100 times more useful.
http://www.bogleheads.org/wiki/Qualified_dividend
http://www.bogleheads.org/wiki/ACA_net_investment_income_tax
http://www.irs.gov/uac/Newsroom/Net-Investment-Income-Tax-FAQs
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Re: WSJ Reporter doing story on Capital Gains Taxes

Postby Mel Lindauer » Thu Feb 14, 2013 2:26 pm

House Blend wrote:The rate structure has gotten more complicated but that doesn't change the basic prinicples.

I don't see much value in an article about people who are confused. A pointer to these wiki articles and the IRS FAQ would be 100 times more useful.
http://www.bogleheads.org/wiki/Qualified_dividend
http://www.bogleheads.org/wiki/ACA_net_investment_income_tax
http://www.irs.gov/uac/Newsroom/Net-Investment-Income-Tax-FAQs


The problems are:
1. Folks think they understand the law but they don't.
2. Folks need to read what the 2013 laws are, now what they were in the past.
3. Folks understand some, but not all of the capital gains impacts.

Any story covering topics like this in a major paper like the WSJ can definitely help investors.
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