Advanced strategies are also available that vastly outperform typical garden-variety tax-loss harvesting and direct indexing.
There are a variety of techniques to potentially reduce capital gains and realize tax savings on the sale of highly appreciated assets, such as a concentrated stock position, impending sale of a business or asset, or other windfall. Some advanced strategies can even eliminate capital gains taxes entirely. A brief primer appears below.
There are a variety of techniques to potentially reduce capital gains and realize tax savings on the sale of highly appreciated assets, such as a concentrated stock position, impending sale of a business or asset, or other windfall. Some advanced strategies can even eliminate capital gains taxes entirely. A brief primer appears below.
What is the difference between Return of Capital vs. Return of Gain? In a private equity fund, there are two main ways you get money back: return of your original investment (return of capital) and profits made by the fund (return of gain). Imagine you put $100,000 into a fund. If the fund gives you $20,000 back, that's a return of your original $100,000 (return of capital). Now you have $80,000 left in the fund. If the fund makes a profit, let's say $50,000 from selling a company, and they give you $10,000 of that profit, that's a return of gain. It's like your share of the profits. So now you've got $10,000 extra in your pocket . For taxes, return of your original investment (return of capital) is usually not taxed. It's like getting back your own money. But the profit part (return of gain) is usually taxed as capital gains. This means you pay taxes on the profit you've made, like when you sell something for more than you bought it for.
Investing in a Unit Trust ISA can be a great way to benefit from a stock market investment while avoiding Income or Capital Gains Tax. With the potential for medium to long term capital growth and income, they are often used as part of a tax-planning strategy. By combining Unit Trusts with a Trust, you can even invest on behalf of children or grandchildren. Remember to seek advice regarding the tax implications though. Learn more about Unit Trusts: https://bit.ly/4699AFO #FinancialAssets #WealthManagement #UnitTrusts
Investing in Unit Trusts can be a great way to benefit from stock market investments while enjoying tax advantages. These professionally managed portfolios offer the potential for capital growth and income over the medium to long term. By using Unit Trusts in conjunction with a Trust, you even have the opportunity to invest on behalf of your loved ones. However, it's important to seek advice regarding the tax implications involved. Learn more about Unit Trusts: https://bit.ly/4699AFO #FinancialAssets #WealthManagement #UnitTrusts
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Got concentrated stock in your portfolio? Explore strategic ways to manage risk and taxes without compromising your financial goals. #ConcentratedStock #CapitalGains #Investing https://lnkd.in/eP6pGgXv
Interested in tax-efficient stock market investments? Consider a Unit Trust ISA for your financial goals! With opportunities for medium to long-term growth and income, it's an excellent avenue to boost your wealth. Utilise Unit Trusts in tax planning strategies to optimise your tax allowances while securing a brighter financial future for yourself or your family. Discover more: https://bit.ly/3ViB0Ho #UnitTrusts #TaxPlanning #StockMarketInvestments
Looking to invest in the stock market tax-efficiently? A Unit Trust ISA could be the perfect option for you! With the potential for medium to long-term growth and income, it's a great way to make your money work harder for you. Plus, with the added benefits of using Unit Trusts in tax planning strategies, you can optimise your tax allowances while building wealth for yourself or loved ones. Learn more: https://bit.ly/3ViB0Ho #UnitTrusts #TaxPlanning #StockMarketInvestments
As a business owner, you may have surplus cash accumulating in your corporation. What is the most tax-efficient way of withdrawing funds? This weeks wealth navigator article discusses various methods of withdrawing cash from your corporation as well as the tax issues and benefits that might apply with each method. https://lnkd.in/gUGve-6D
This week Robert Rich CFP® and I went out and did a presentation for a group of first time investors where we discussed a couple of useful strategies. One of these strategies was the Super Saver Scheme (one of the best kept secrets). We explained that it: 🔸Is a tax effective way to save for a house deposit, 🔸Is a forced savings method (thanks boss!), 🔸Allows for potential higher returns on your savings in the super environment. If you are trying to save for your house deposit, and haven’t heard of the Super Saver Scheme, reach out and we can let you in on the secrets too! 🤫🤫 #supersaverscheme #investing #superannaution #firsthome #saving #investors +++++++++++++++++++++++++++++++++++ This information is general in nature and does not consider your personal objectives, financial situation or needs. Because of this, you should, before acting on the information, consider its appropriateness, having regard to your personal objectives, financial situation and needs.
The secret of successful saving for your children is to start early. Swipe to find out more about how you can invest for your family's future. *Moneyfarm, 2023 The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. An investment placed into funds (equities) would not have the security of capital associated with a deposit account with a bank or building society. The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances. Please note that St. James's Place does not offer Cash ISAs. #financialplanning #family #finance #financialfuture
