| QUOTES from
the
Masters... |
| On Opportunities |
On Focus |
| "A
pessimist sees the difficulty in every opportunity; an optimist sees
the
opportunity in every difficulty." -- Sir
Winston Churchill
"The
foolish man seeks happiness in the distance; the wise grows it under
his
feet." -- James Oppenheim
"When
one door closes another door opens; but we so often look so long and so
regretfully upon the closed door, that we do not see the ones which
open
for us." -- Alexander Graham Bell
"There's
no way you can look into the game of life and determine whether or not
you'll get that big break tomorrow or whether it will take another
week,
month, year or even longer. But it will come!" -- Zig
Ziglar |
"Focused
mind power is one of the strongest forces on earth." -– Mark
Victor Hansen
"Above
all be of single aim; have a legitimate and useful purpose, and devote
yourself unreservedly to it." -- James
Allen
"What
this power is I cannot say; all I know is that it exists and it becomes
available only when a man is in that state of mind in which he know
exactly
what he wants and is fully determined not to quit until he finds it."
-- Alexander
Graham Bell
"To
do two things at once is to do neither." -- Publilius
Syrus
|
|
Capital Gains and Dividend Taxation
Today's
topic
is the taxation of capital gains and dividends. If you
would like additional information on this topic, please call my office.
|
The capital
gains and dividend taxation provisions of the 2003 Tax Act (Jobs and
Growth Tax Relief Reconciliation Act), scheduled to expire at the end
of 2008, were extended through 2010 by the Tax Increase Prevention and
Reconciliation Act of 2005 and, subsequently, through 2012 by the 2010
Tax Relief Act.
Long-Term
Capital Gains Tax Rates
A capital
gain results when an asset is sold or
exchanged
for more than its cost basis. Capital gains realized on assets
held
for one year or less are short-term
capital
gains and are taxed at ordinary
income tax rates. Long-term
capital gains resulting from the sale or
exchange
or an asset held more than one year, however, receive
more favorable tax treatment. In 2011,
capital gains taxes were scheduled to return to the rates in effect prior to
the passage of the 2003 Tax Act. As part
of the 2010 Tax Relief Act, however, Congress extended the lower capital
gains tax rates through 2012.
|
For
Long-Term Capital Gains Realized:
|
| Tax
Rates: |
In 2011 and 2012
|
In
2013 and later
|
| Maximum Tax
Rate |
15%
|
20%
|
| Tax Rate
(10% and 15%
tax brackets) |
0%
|
10%
|
|
Dividend
Tax Rates
Prior
to the passage of the 2003 Tax Act, dividends were taxed at ordinary income tax
rates. With the passage of the 2003 Tax
Act, dividends paid by a domestic or qualified foreign corporation to
individual shareholders are taxed at the new lower capital gains tax rates
(15% or 5%). Beginning on January 1, 2011,
dividends were scheduled to again be taxed at ordinary income tax rates. The 2010 Tax Relief Act, however, extended
use of the lower capital gains tax rates for dividends received by individuals
through December 31, 2012.
|
For
Dividends Received by Individuals:
|
| Tax
Rates: |
In 2011 and 2012
|
In
2013 and later
|
| Maximum Tax
Rate |
15%
|
Ordinary
income tax
rates
|
| Tax Rate
(10% and 15%
tax brackets) |
0%
|
Ordinary
income tax
rates
|
|
Planning
Notes:
| 1. |
The individual
shareholder
must own the dividend-paying stock for at least 60 days in the 120-day
day period surrounding the ex-dividend date to receive the favorable
tax
rate. |
| 2. |
Generally speaking,
the
15% top rate makes dividend-paying stocks more attractive from a tax
standpoint
than investments that pay out ordinary income, such as REITs and
taxable
bonds. Tax treatment, however, should not be the sole determining
factor in investment selection. |
|
|
| MESSAGES
from
the Masters... |
ACTION
VS SELF-DELUSION by Jim Rohn
Knowledge
fueled by emotion equals action. Action is the ingredient
that
ensures results. Only action can cause reaction. Further,
only
positive action can cause positive reaction.
Action.
The whole world loves to watch those who make things happen, and it
rewards
them for causing waves of productive enterprise.
I stress
this because today I see many people who are really sold on
affirmations.
And yet there is a famous saying that "Faith without action
serves
no useful purpose." How true!
I have
nothing against affirmations as a tool to create action. Repeated
to reinforce a disciplined plan, affirmations can help create wonderful
results.
But
there is also a very thin line between faith and folly. You see -
affirmations
without action can be the beginnings of self-delusion. And for
your
well being, there is little worse than self-delusion.
The
man who dreams of wealth and yet walks daily toward certain financial
disaster
and the woman who wishes for happiness and yet thinks thoughts and
commits
acts that lead her toward certain despair are both victims of the false
hope which affirmations without action can manufacture.
Why?
Because words soothe and, like a narcotic, they lull us into a state of
complacency. Remember this: TO MAKE PROGRESS YOU MUST
ACTUALLY
GET STARTED!
The
key is to take a step today. Whatever the project, start TODAY.
Start clearing out a drawer of your newly organized desk...today.
Start setting your first goal...today. Start listening to
motivational
cassettes...today. Start a sensible weight-reduction
plan...today.
Start calling on one tough customer a day...today. Start putting
money in your new "investment for fortune" account...today. Write
a long-overdue letter...today. ANYONE CAN! Even an
uninspired
person can start reading inspiring books.
Get
some momentum going on your new commitment for the good life. See
how many activities you can pile on your new commitment to the better
life.
Go all out! Break away from the downward pull of gravity.
Start
your thrusters going. Prove to yourself that the waiting is over
and the hoping is past -- that faith and action have now taken charge.
It's
a new day, a new beginning for your new life. With discipline you
will be amazed at how much progress you'll be able to make. What
have you got to lose except the guilt and fear of the past?
Now,
I offer you this challenge: See how many things you can start and
continue in this -- the first day of your new beginning.
To
Your Success,
Jim
Rohn
|
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|
