00444 November 18, 2023: Major Questions About Stocks, Real Estate, Taxes, and Retirement Accounts

Number: 00444

Published: 2023-11-18

Pages: 8

Source filename: 00444 2023年11月18日股市、房市、稅務、退休帳戶大哉（災）問..pdf

Original PDF: Open PDF

Document Text

We are not professional investment advisors or tax experts. We are only sharing information and experience. Please research investment and tax issues and consult professionals.

Short-term capital gains are taxed as ordinary income.
The IRS separates dividends into two classes: ordinary and qualified. A dividend is considered qualified if you have held the stock for more than 60 days during the 121-day period that began 60 days before the ex-dividend date. It is an ordinary dividend if you purchase after the ex-dividend date.
Ordinary dividends are taxed as ordinary income, similar to short-term capital gains.
Qualified dividends receive the long-term capital gains tax treatment because you held the stock longer.

In the United States, as long as you keep holding real estate, you keep paying property tax, and the annual property tax can continue increasing. From an investment perspective, that can feel like a life sentence, so real estate is not necessarily a good investment. This is about investment, not about the emotional value of having a home.
Under California Proposition 19, the property-tax basis for inherited real estate is calculated from the market value at the time of inheritance.
Although the inherited property's cost basis can be stepped up to the market value at inheritance, if the heir keeps holding the property, property tax starts from that inherited market value.

Traditional retirement accounts require forced withdrawals at age 72. If the account has millions, which can be normal with proper investing, then forced withdrawals at age 72 may create a tax bill in the tens of thousands.
That is why you should not casually talk about traditional retirement accounts without also discussing ROTH retirement accounts.
Unless you understand what we teach about traditional retirement accounts: this is not about a long time horizon, but about earning a return similar to the Nasdaq 100 while receiving the tax benefit of a traditional retirement account. When income is lower after retirement, you can move money out of the traditional retirement account at a relatively lower tax rate.
If you do not know how to keep a traditional retirement account from growing too fast while still achieving returns similar to the Nasdaq 100, then do not bring up traditional retirement accounts casually. Use a ROTH retirement account instead.

Number: 00444

Published: 2023-11-18

Pages: 8

Source filename: 00444 2023年11月18日股市、房市、稅務、退休帳戶大哉（災）問..pdf

Original PDF: Open PDF

We are not professional investment advisors or tax experts. We are only sharing information and experience. Please research investment and tax issues and consult professionals.

Short-term capital gains are taxed as ordinary income.
The IRS separates dividends into two classes: ordinary and qualified. A dividend is considered qualified if you have held the stock for more than 60 days during the 121-day period that began 60 days before the ex-dividend date. It is an ordinary dividend if you purchase after the ex-dividend date.
Ordinary dividends are taxed as ordinary income, similar to short-term capital gains.
Qualified dividends receive the long-term capital gains tax treatment because you held the stock longer.

In the United States, as long as you keep holding real estate, you keep paying property tax, and the annual property tax can continue increasing. From an investment perspective, that can feel like a life sentence, so real estate is not necessarily a good investment. This is about investment, not about the emotional value of having a home.
Under California Proposition 19, the property-tax basis for inherited real estate is calculated from the market value at the time of inheritance.
Although the inherited property's cost basis can be stepped up to the market value at inheritance, if the heir keeps holding the property, property tax starts from that inherited market value.

Traditional retirement accounts require forced withdrawals at age 72. If the account has millions, which can be normal with proper investing, then forced withdrawals at age 72 may create a tax bill in the tens of thousands.
That is why you should not casually talk about traditional retirement accounts without also discussing ROTH retirement accounts.
Unless you understand what we teach about traditional retirement accounts: this is not about a long time horizon, but about earning a return similar to the Nasdaq 100 while receiving the tax benefit of a traditional retirement account. When income is lower after retirement, you can move money out of the traditional retirement account at a relatively lower tax rate.
If you do not know how to keep a traditional retirement account from growing too fast while still achieving returns similar to the Nasdaq 100, then do not bring up traditional retirement accounts casually. Use a ROTH retirement account instead.