Capital gain – Kat Masters http://katmasters.com/ Mon, 21 Nov 2022 23:23:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://katmasters.com/wp-content/uploads/2021/06/icon-2021-06-25T173039.237-150x150.png Capital gain – Kat Masters http://katmasters.com/ 32 32 Finally, exchanging goods tax-free https://katmasters.com/finally-exchanging-goods-tax-free/ Mon, 21 Nov 2022 23:23:00 +0000 https://katmasters.com/finally-exchanging-goods-tax-free/ Our tax laws provide for a tax-free exchange of property, where up to four people can transfer property (either stock or real estate) to a corporation in exchange for stock, allowing transferors to take the control of society. The law provides that no gain should be recognized so that certain taxes are also not assessed. […]]]>

Our tax laws provide for a tax-free exchange of property, where up to four people can transfer property (either stock or real estate) to a corporation in exchange for stock, allowing transferors to take the control of society. The law provides that no gain should be recognized so that certain taxes are also not assessed.

In general, there are two types of tax-free exchange: (1) merger or consolidation and (2) transfer to a controlled corporation.

Companies may decide to use these transfers to maximize efficiency and operations by performing (a) mergers or consolidations, (b) acquisition of a controlled company, (c) acquisition of all or substantially all of the properties of another company, (d) recapitalization and (e) reincorporation.

Transfers of assets to a controlled corporation under the exempt tax provision have sometimes been associated with tax and estate planning or the avoidance of a higher tax rate.

These tax-exempt transfers are exempt from capital gains tax, withholding tax, income tax, donor’s tax, value added tax and documentary stamp duty. on the disposal of real estate and shares.

Notably, the tax-exempt nature is actually not perpetually tax-exempt, but merely a deferral or suspension of taxes that must be assessed and paid if the transferred property is subsequently sold or transferred.

The tax-free exchange provision is found at Sec. 40(c)(2) of Republic Act No. 8424 or the National Revenue Code of 1997 (Tax Code) which provides that – No gain or loss will be recognized if any property is transferred to a corporation by one or several persons, not more than four, in exchange for shares or units of participation in that company which, as a result of this exchange, the person or persons acquire control of the company. Control holding at least 51% of the total voting rights of all classes of shares entitled to vote.

Due to the tax-exempt nature of the transfer, the Bureau of Internal Revenue (BIR) has certainly not made it easy for taxpayers to avail themselves of this provision. It had issued regulations requiring that taxpayers must apply for and obtain a BIR ruling or certification as a precondition for tax-free exchange. Without this decision or certification from BIR, BIR will not issue the Registration Authorization Certificate (CAR) required for the transfer and registration of ownership of shares and title deed certificates, and will consider any transaction of this type as taxable.

Taxpayers who have gone through this process know only too well the time, effort and expense that this process entails. Notably, a few years ago, there was even a period of several years where the BIR issued no ruling or certification or, made it very difficult to obtain one, effectively putting a pause on this provision of the law .

Two recent developments have finally brought the spirit and words of the law to life, as Congress intended.

In 2020, the Supreme Court ruled on Commissioner of Internal Revenue v Lucio Co, et al. (GR no. 241424, February 24, 2020) where he stated that, since the Tax Code does not require a prior confirmatory decision, the benefit by the taxpayer of the tax-free exchange under art . 40(C)(2) of the IRC, BIR should not impose the additional requirements for obtaining a ruling or certification as it had done through Tax Regulation No. 18-2001, Tax Memorandum Orders 32-2001 and 17-2002.

Then, on April 11, 2022, the Business Recovery and Tax Incentive Act or CREATE Act (Republic Act No. 11535) came into effect when the tax-free exchange provision of the Internal Revenue Code was confirmed with two important additions to Sec. 40 (C)(2). These are: 1.) No prior confirmation or BIR tax ruling is required, and 2.) The tax-free exchange transfer will result in the transferor taking control or maintaining control of the recipient company.

The original provision of the Tax Code provided that the transferor acquires control of the company, which suggests that if the transferor already controlled the company before the transfer, it may not be considered a tax-free exchange . The law has now clarified that transfers that result in the transferor maintaining control of the corporation also qualify as a tax-free exchange.

As a result of the above developments, the BIR issued Revenue Memorandum Circular No. 19-2022 on February 4, 2022 confirming that:

a. No BIR tax ruling is required to benefit from the tax-free exchange of goods under the Revenue Code, as amended by the CREATE Act.
b. Taxes are deferred or suspended and any gain or loss must be recognized upon subsequent transfer of the property or shares.
vs. The substituted valuation of properties transferred and shares received must be established and controlled so that when they are subsequently sold or disposed of, they are properly taxed.
D. The transfer of property in exchange for shares is exempt from capital gains tax, withholding tax, income tax, donor’s tax, value added tax and duty. of documentary stamp on the transfer of real estate and shares. However, the initial issuance of shares of the corporation in exchange for the transferred property is subject to DST.
e. Reporting requirements are set such as the inclusion in the parties’ tax return of the facts of non-recognition of the gain or loss on the exchange and the annotation on the stock and securities certificates the initial cost or property acquisition history.
F. The BIR tax district office will conduct a post-audit of the transaction
g. Although the certification or ruling is no longer required, taxpayers can still request an opinion from the BIR.

In addition to the welcome changes above, there have been recent developments and changes in our tax environment worth mentioning.

1. The TRAIN law which entered into force on January 1, 2018 changed the rate of inheritance and inheritance tax from the progressive rate of 5% to 20% to a single flat rate of 6%. (Republic Act No. 10963).

2. There is still the estate tax amnesty with an extended deadline until June 14, 2023 and the estates of those who died on or before December 31, 2017 can benefit from the rate of 6% of the net estate without penalties. (Republic Act No. 11213, RR No. 6-2019, Republic Act No. 11569, and RR No. 17-2021)

3. The TRAIN law also simplifies the donor tax scale which was previously 2% to 15% to a single rate of 6% of total donations exceeding P250,000.

4. All of the above, capital gains taxes for the sale of capital assets that are real estate remain at 6%. On the other hand, the CREATE Act increased capital gains tax on sales of non-exchange-traded shares from 5% and 10% to a flat rate of 15%.

Previous amendments harmonized previous tax laws and rates, which to some extent encouraged people to take advantage of the tax-free exchange of goods under the Tax Code. With the streamlining of tax rates, some people, particularly those who viewed tax-free exchanges primarily as a form of estate planning, may no longer find the need to use the tax-free exchange provision. tax of the Tax Code.

(The author, Atty. John Philip C. Siao, is a practicing attorney and founding partner of Tiongco Siao Bello & Associates Law Offices, a professor at MLQU School of Law, and an arbitrator for the Industry Arbitration Commission of construction of the Philippines. He can be contacted at [email protected] The opinions expressed in this article belong solely to the author.)

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Dividends: a superpower that should be recognized https://katmasters.com/dividends-a-superpower-that-should-be-recognized/ Fri, 18 Nov 2022 06:21:38 +0000 https://katmasters.com/dividends-a-superpower-that-should-be-recognized/ Due to two key factors, stock investing has grown in popularity with investors over time. First of all, it is a simple and incredibly convenient form of investment. Second, stocks are a hybrid form of investing. In other words, long-term equity investors stand to gain from both types of returns offered by stocks. First, they […]]]>

Due to two key factors, stock investing has grown in popularity with investors over time. First of all, it is a simple and incredibly convenient form of investment. Second, stocks are a hybrid form of investing. In other words, long-term equity investors stand to gain from both types of returns offered by stocks. First, they provide regular income to investors in the form of dividends. Second, investors profit when the value of their stocks increases gradually over time; this is called a capital gain or capital appreciation. The majority of investors, almost obsessively, favor capital gains as their preferred mode of return. However, due to the capital gains focus of stock markets, we often overlook dividends as a different component and a different type of return. Therefore, I’ll discuss how dividends can be just as attractive a form of return as capital appreciation, if not more so, in today’s article.

Let’s start by having a basic understanding of what dividends are before moving on. Shareholders are first and foremost owners of the companies whose shares they hold. Moreover, since shareholders are also owners of a company, dividends are a part of the company’s profits that are distributed to shareholders in exchange for their ownership of the company. Buying stocks that consistently pay dividends is undervalued and sometimes even ignored. However, if used correctly, dividends can be used to significantly increase returns from our equity investments.

On the face value of a company’s shares, dividends are paid. And their main sources of income are these two:

° The company’s after-tax earnings per share of its stock

° Unlimited cash on hand

Now let’s look at how dividends increase our stock returns. Consider the information below for a hypothetical investor who owns 1,000 shares of a particular stock and has a constant dividend payout ratio of 50% of annual EPS.

Therefore, even if the distribution rate remains constant at 50%, the investor would receive dividends worth Rs 5,000 in the first year, Rs 7,500 in the second year and Rs 10,000 in the third year. This is due to the company’s ability to continuously increase its earnings and EPS year over year. There is another school of investing that advocates building and maintaining a portfolio of those companies that are constantly increasing their profits and dividends. This is what investing in dividend growth is called. Dividends and the sustainability of dividend payments are an important factor in determining the shape of returns and the quality of stocks. This is because companies can only declare dividends consistently when profits are high and cash flow is positive.

The fact that a company’s dividend payouts result from its corporate policy rather than how the market views the company is another big benefit of dividends. On the other hand, capital growth depends on both the company’s fundamentals and the market’s perception of its stock, both of which can change over time. Dividend yields are therefore a more reliable estimate and a stable component of returns relative to capital appreciation. This is especially true when there is a downturn in the economy and stocks and markets as a whole are performing poorly. Dividends act as a buffer for investors in these situations, reducing the impact of falling stock prices.

Although dividend payments may initially be modest, reinvesting dividends in more shares of the stock that paid the dividend increases our ownership of the stock and entitles us to larger dividend payments over time. coming. The final capital gains of the underlying shares would also be magnified by reinvestments. Therefore, the reinvestment of dividends is a key driver of stock performance. Look at the information below, assuming an investor owns 1000 shares of a company that consistently pays a dividend of Rs. 10 every year, to better understand this.

The important thing to note in this situation is that the investor is still reinvesting all of their dividends at the current market price, thus increasing their shareholding and dividend income year on year. Also observe that even in year 4, when the market price drops to Rs 150, it continues to receive the same dividend per share.

In times of inflation, dividends also preserve the purchase value of our money. Because we would have to pay more for the goods and services we use, inflation is negative for us as individuals. However, since companies are likely to increase the selling prices of their goods and services, inflation benefits them. Price increases translate into higher profits, which in turn translate into higher dividend payments. This solves one of our main concerns in times of inflation by indicating that the purchasing power of our currency would not be significantly impacted.

Dividends were previously fully tax exempt for shareholders. However, a recent decision by the Government of India has subjected dividends received after April 1, 2020 to appropriate flat tax rates in the hands of shareholders. Obviously, this undermines the attractiveness of the possibility of obtaining dividends. But keep in mind that dividends are insured cash payments that are credited directly to our bank accounts. And why not like having money in our bank accounts in a cold and brutal way? Better than not having an amount at all, it is to have a reduced amount after taking into account taxes. for the tax component of all income is just that – a component. Saving tax on our investments is beneficial, but it should not become a fixation. Our investments go well beyond simple tax reduction. Additionally, when the profits are substantial enough, they can be used to cover our living expenses. Remember that dividends are paid out of the funds of our companies. So, past a certain point, our companies cover our costs. Show me an advantage of dividend stock investing that’s better than this.

By now it should be obvious that dividends aren’t as boring and unattractive as they are. Moreover, the dividends are not without merit, even if the financial gains on our assets are undoubtedly pleasing and satisfying. And when it comes to increasing the returns of our equity investments, dividends have the potential to be even more powerful than capital gains if used and channeled correctly. Always buy a hen for her eggs, a cow for her milk, bees for their honey and stocks for their dividends, as a saying in the investment world goes.

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Olympique Lyonnais Group: FIRST QUARTER 2022/23 SALES https://katmasters.com/olympique-lyonnais-group-first-quarter-2022-23-sales/ Mon, 14 Nov 2022 17:05:01 +0000 https://katmasters.com/olympique-lyonnais-group-first-quarter-2022-23-sales/ FIRST QUARTER 2022/23 REVENUES TOTAL INCOME[1]: €101.0m (+€23m OR 30%) including the 1st payment linked to the LFP/CVC transaction ALL REVENUE STREAMS ARE UP excluding impact of not qualifying for the European Cup in 2022/23 Lyon, November 14, 2022 In €m (from July 1 to September 30, 2022) 09/30/20223 months 09/30/20213 months Chg.(in €m) Chg.in […]]]>

FIRST QUARTER 2022/23 REVENUES

TOTAL INCOME[1]: €101.0m (+€23m OR 30%)

including the 1st payment linked to the LFP/CVC transaction

ALL REVENUE STREAMS ARE UP

excluding impact of not qualifying for the European Cup in 2022/23

Lyon, November 14, 2022

In €m (from July 1 to September 30, 2022) 09/30/2022
3 months
09/30/2021
3 months
Chg.
(in €m)
Chg.
in %
TICKETING 10.1 7.0 +3.2 +45%
including French Ligue 1 and other matches 10.1 5.9 +4.2 +72%
including European competitions 0.0 1.1 -1.1 -100%
MEDIA AND MARKETING RIGHTS 10.0 15.1 -5.0 -33%
of which LFP-FFF 9.8 8.6 +1.3 +15%
of which UEFA media rights 0.2 6.5 -6.3 -97%
SPONSORSHIP – ADVERTISING 9.2 8.8 +0.4 +5%
BRAND-RELATED REVENUES 6.1 4.0 +2.2 +54%
of which derivatives 3.3 2.7 +0.5 +20%
including image/video and other 2.9 1.3 +1.6 +126%
EVENTS 5.1 1.9 +3.3 +176%
including seminars and stadium visits 1.1 1.1 0.0 +4%
including major events 4.0 0.8 +3.2 +414%
REVENUES (EXCLUDING PLAYER EXCHANGES) 40.6 36.6 +3.9 +11%
LFP/CVC FINANCIAL ASSISTANCE * 16.5 0 +16.5
INCOME FROM THE SALE OF PLAYER REGISTRATIONS 43.9 41.3 +2.6 +6%
TOTAL INCOME1 101.0 77.9 +23.0 +30%
Total revenue excluding LFP/CVC financial competitions 84.5 77.9 +6.5 +8%

* The financial aid received from the LFP has been temporarily isolated on a separate line, its accounting treatment (IFRS) being still under analysis. This payment concerns the new subsidiary of the LFP, of which CVC Capital Partners is co-owner.

1/ TOTAL TURNOVER: €101.0 M (+€23.0 M OR 30%)

STRONG INCREASE IN TICKET REVENUES: €10.1 M (+€3.2 M OR 45%)

In the first quarter of 2022/23, ticketing revenue increased sharply (+45%), despite the absence of European Cup competition. With the same number of matches as in Q1 2021/22, Ligue 1 ticketing revenue amounted to €10.1m, compared to €5.9m a year earlier, mainly reflecting a record attendance in Ligue 1 during the match against PSG on September 18, 2022.

MEDIA AND MARKETING RIGHTS: €10.0 M (DOWN €5.0 M OR 33%)

Media and marketing rights decreased in the first quarter of 2022/23 as the Club did not participate in a European Cup competition this season. In the first quarter of 2021/22, media and marketing rights included €6.5m of UEFA rights related to the group stage of the Europa League. National media rights (LFP/FFF) amounted to €9.8m in the first quarter of 2022/23, compared to €8.6m in Q1 2021/22 (6e in Ligue 1 against 7e one year earlier).

SPONSORSHIP – ADVERTISING: €9.2 M (+€0.4 M OR 5%)

Sponsorship-Advertising revenue increased by 5% to €9.2 million, a record for the first quarter, demonstrating the continued attractiveness of the OL brand.

BRAND TURNOVER: €6.1 M (+€2.2 M OR 54%)

Merchandise revenue was €3.3m, compared to €2.7m in Q1 2021/22, reflecting an increase in stadium sales linked to the Rammstein and Rolling Stones concerts in July 2022 Other brand-related revenue, including various royalties, amounted to €2.9 million.

EVENTS: €5.1 M (+€3.3 M OR 176%)

Revenue from events more than doubled in the first quarter of 2022/23 to €5.1m (vs. €1.9m in Q1 2021/22) thanks to major musical events at Groupama Stadium: Rammstein on 8 & 9 July 2022 and the Rolling Stones on July 19, 2022, attracting more than 150,000 spectators in total. Revenue from the “Major Events” activity thus amounted to €4.0 million in the first quarter, compared to €0.8 million in Q1 2021/22 which included the France-Finland match of September 7, 2021 sold out.

Turnover from seminars and stadium visits was stable at €1.1 million.

LFP/CVC financial aid: €16.5 million

The financial assistance received from the LFP has been temporarily isolated on a separate line, its accounting treatment (IFRS) still being analysed. This payment concerns the new subsidiary of the LFP, of which CVC Capital Partners is co-owner.

Reminder: The LFP has created a commercial subsidiary, with CVC Capital Partners, which is investing €1.5 billion for a 13% stake. The operation was finalized at the end of July 2022. The Ligue 1 and Ligue 2 college and the LFP board of directors validated the distribution of the €1.13 billion to be paid to the clubs (spread over several financial years) , including a total of 90 million euros to be paid to Olympique Lyonnais. In August 2022, OL Groupe received an initial payment of 16.5 million euros. Subsequent payments are scheduled for July 2023 (€23.5m) and later in fiscal year 2023/24 (€50m), subject to completion of planned transactions between the LFP and CVC Capital Partners.

PLAYER TRADING: €43.9M (UP €2.6M OR 6%)

During the first quarter of 2022/23, Olympique Lyonnais transferred several players, including Lucas Paqueta to West Ham for €36.4m (IFRS)[2] and Léo Dubois to Galatasaray for 2.4 million euros. The club also received loan repayments and selling fees for a total amount of 5.1 million euros.

In the first quarter of 2021/22, Olympique Lyonnais received €41.3m in revenue from the sale of player contracts, corresponding to four transfers for a total of €39.8m, to which are added €1.4m in cession fees on previous transfers.

2/ OUTLOOK

The post-Covid business recovery that began in fiscal year 2021/22 continued in the first quarter of 2022/23.

OL Groupe reaffirms its sporting ambitions for the 2022/23 and following seasons. It will rely on its fundamentals, including the OL Academy, as well as targeted summer exchanges, player contract extensions and the arrival of Laurent Blanc, the new charismatic French manager, to regain a European place in 2023/ 24.

After hosting several major events in 2021/22 and early 2022/23, Groupama Stadium is offering a rich new program from spring 2023, including concerts by Depeche Mode (May 31, 2023), Muse (June 15, 2023 ), Mylène Farmer (June 23 & 24, 2023), five Rugby World Cup matches (September/October 2023) and football matches and tournaments (men’s and women’s) as part of the Paris 2024 Olympic Games. other concerts and events should be confirmed soon.

Construction of the LDLC Arena, 100% funded by OL Groupe, is continuing on schedule at the Vallée de l’OL site. Construction began in January 2022, and the arena is expected to enter service in late 2023. The LDLC Arena lineup officially kicked off with the Shaka Ponk concert scheduled for February 2, 2024.

OL Groupe also reiterates its medium-term objectives, detailed in its press release of July 7, 2022, to achieve the following objectives by 2025/26 (subject to the transaction with Eagle Football being completed): (i) a total turnover of around 400 to 420 million euros (scenario including a qualification in the Champions League and an exchange of players) and (ii) an EBITDA above 90 million euros . These objectives also include a net debt of less than €180m by 2025/26 (scenario where the balance of stadium debt is refinanced over 7 years from July 1, 2024).

OL Groupe reminds investors that its main shareholders (Holnest, Pathé and IDG) have signed an agreement with Eagle Football under the terms of which Eagle Football will acquire OL Groupe shares and OSRANEs representing approximately 74.19% of the Company’s capital over a fully diluted basis. In this context, Eagle Football has agreed to subscribe to an OL Groupe capital increase of approximately 86 million euros. The effective date of these operations has been postponed to November 17, 2022.

At the end of the operations, Eagle Football will file, on behalf of the concert group composed of itself and Holnest, a simplified public purchase offer for the balance of the shares of OL Groupe, in accordance with the regulations. in force, followed by a mandatory withdrawal. , if the necessary conditions are met.

(The Company has issued several press releases regarding the transaction with Eagle Football, most recently on October 24, 2022; the transaction is also detailed in the Company’s Universal Registration Document 2021/22.)

“This document contains information on OL Groupe’s objectives. Please note that known and unknown risks, uncertainties and other factors may affect the achievement of these objectives and, therefore, OL Groupe’s future results, performance and achievements may differ materially from the implied or stated objectives. These factors could include changes in the economic and commercial environment, regulations, the course of the pandemic and the risk factors detailed in OL Groupe’s 2021/22 Universal Registration Document.

Such: +33 (0)4 81 07 55 00
Fax: +33 (0)4 81 07 45 65

E-mail: investors@ol.fr

www.ol.fr

Euronext Paris – Compartment C

Indices: CAC Small – CAC Mid & Small – CAC All-Tradable – CAC All-Share – CAC Consumer Discretionary
ISIN Code: FR0010428771
Reuters: OLG.PA
Bloomberg: OLG FP
AOI: 40501030 Recreational services


[1] Alternative Performance Indicator (API): “Total turnover” corresponds to the previous definition of “Total turnover”, i.e. turnover excluding player exchanges plus proceeds from the sale of contracts players.

[2] Total transfer fee of €61.63m, including bonuses of €18.68m spread over the five years of the player’s contract, plus an additional sales commission of 10% of any future capital gains; in addition, 15% of any capital gains and possible bonuses would be donated to his former club, AC Milan.



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© 2022 NewsNews

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Losing big in crypto? Here’s how to reduce the sting https://katmasters.com/losing-big-in-crypto-heres-how-to-reduce-the-sting/ Fri, 11 Nov 2022 17:49:00 +0000 https://katmasters.com/losing-big-in-crypto-heres-how-to-reduce-the-sting/ Editor’s note: This is an updated version of an article first published on August 17, 2022. Even before crypto exchange FTX imploded this week, shaking the foundations of the digital asset world, crypto investors had experienced a volatile and loss-making year. They saw the price of their digital assets fall, then recover somewhat, then fall […]]]>

Editor’s note: This is an updated version of an article first published on August 17, 2022.

Even before crypto exchange FTX imploded this week, shaking the foundations of the digital asset world, crypto investors had experienced a volatile and loss-making year. They saw the price of their digital assets fall, then recover somewhat, then fall back.

Bitcoin, for example, is now down about 65% year-to-date and more than 75% from its all-time high.

If you bought a cryptocurrency when it was on the rise and sold your holding this year – or plan to do so – there are at least two ways to lessen the impact of your loss.

You can use a loss in crypto to offset any capital gain you’ve made this year – even if it’s from selling another security or another property, such as stock or a house.

For example, suppose you bought bitcoin at $50,000 in February 2021 and then sold it in mid-August of this year at $24,000, you would have a long-term capital loss of 26,000 $, because you have held the investment for more than a year.

Then suppose you also booked a $10,000 capital gain by selling a long-held stock in a taxable brokerage account (i.e. not a tax-deferred account like a 401(k) or a IRA).

You can fully offset the tax owed on your $10,000 capital gain with $10,000 of your capital losses on your 2022 tax return. Additionally, you can also use your losses to offset the tax owed on up to $3,000 of your regular income this year.

Whatever losses you don’t use this year, you can still use in future years. So, in the example above, you would use half of your capital losses this year ($13,000) to offset your Capital gain of $10,000 and income of $3,000. Then you can carry the other half of your losses forward to future years. And if you have a year where you have no gains to offset, you can still use $3,000 of your losses to offset taxes on $3,000 of your income.

But when you die, your losses will die with you for tax purposes. You cannot bequeath them for someone else to use. “Your heirs don’t inherit the losses,” said California-based CPA and certified financial planner Larry Pon.

Unlike stocks, you can choose to sell a losing crypto asset to claim the tax loss, but then buy the same asset again at the time of the sale.

Here’s why: for tax purposes, crypto assets are classified as property, not securities. So while you can use capital losses from both types of assets to offset your gains, there is another tax rule that only governs securities and does not apply to cryptoassets. At least not yet.

This is called the wash-sell rule. The IRS will disallow any capital loss you claim on the sale of a stock or security if you redeem it or something “substantially identical” to it within 30 days before or after the sale.

There is no comparable rule for cryptography. “Although the IRS has not specifically addressed the area, most practitioners are of the view that wash sale rules generally do not apply to crypto. The IRS has said it treats virtual currency like property, while wash sale rules apply to stocks and securities,” said Mark Luscombe, senior federal tax analyst for Wolters Kluwer Tax & Accounting.

So if you book a loss but still think the same crypto asset has long-term promise, you can buy it back at any time. Even the same day you sell.

“If you sell [a cryptocurrency] and redeeming it quickly will allow you to reap tax losses without triggering the 30-day rule,” said Kell Canty, CEO of crypto tax software provider Ledgible.

This trading advantage over securities may not last forever. Lawmakers have already proposed extending the wash sale rule to cover crypto and other assets in the proposed legislation. But the chances of that expansion happening this year are very low.

“This rule may change in the future, but for 2022 crypto assets are not subject to the wash sale rules,” Pon said.

An exception may be if you have indirect exposure to crypto assets, such as through an exchange-traded fund that trades on an exchange, such as the ProShares Bitcoin ETF (BITO).

“Exchange trading could allow the IRS to treat such crypto as security and [therefore] subject to wash sale rules,” Luscombe said.

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What is capital gains tax? Jeremy Hunt ‘considers capital gains tax hike’ to fix £50bn hole https://katmasters.com/what-is-capital-gains-tax-jeremy-hunt-considers-capital-gains-tax-hike-to-fix-50bn-hole/ Fri, 04 Nov 2022 21:42:48 +0000 https://katmasters.com/what-is-capital-gains-tax-jeremy-hunt-considers-capital-gains-tax-hike-to-fix-50bn-hole/ Jeremy Hunt is staging a ‘raid’ on savers, homeowners and entrepreneurs to plug the £50billion black hole in UK public finances, according to a report by The Telegraph. The Chancellor is “assessing” an increase in the rate of capital gains tax (CGT) as well as taxes on dividends before the fall declaration. Reports indicate that […]]]>

Jeremy Hunt is staging a ‘raid’ on savers, homeowners and entrepreneurs to plug the £50billion black hole in UK public finances, according to a report by The Telegraph. The Chancellor is “assessing” an increase in the rate of capital gains tax (CGT) as well as taxes on dividends before the fall declaration.

Reports indicate that not only are officials staging a reduction in the tax-free dividend allowance of £2,000, Hunt himself is planning changes to the rate and allowances on CGT while hitting the aforementioned groups with an increase in l dividend tax.

What is capital gains tax?

Prime Minister Rishi Sunak (centre) alongside Chancellor of the Exchequer Jeremy Hunt (centre right) holds his first Cabinet meeting in Downing Street.

According to the UK government, CGT is a “tax on profits when you sell (or ‘give away’) something (an ‘asset’) that has increased in value.

“It is the gain you make that is taxed, not the amount of money you receive. For example, if you bought a painting for £5,000 and later sold it for £25,000, you made a profit of £20,000 (£25,000 minus £5,000).

The Economic Times reports that “assets are things you own that you can sell for money” and that CGT is levied on profits made on the sale of those assets. CGT rates depend on the taxpayer, for basic taxpayers it is charged either 10 or 18% but for additional rate taxpayers, it is at 20 or 28%.

What does Jeremy Hunt expect with capital gains tax?

The UK government defines CGT as “the tax on profits when you sell (or ‘give away’) something (an ‘asset’) that has increased in value”.

Jeremy Hunt, the new Chancellor of the Exchequer after the sacking of Kwasi Kwarteng, is considering an increase in the headline CGT rate and dividend taxes in the autumn statement. These tax hikes immediately provoked backlash from business leaders who protested that it would undermine business and savings, and in particular owners who “faced pressure from increasingly strong on returns” following the 2019 general election.

Hunt and Conservative leader Rishi Sunak, however, concluded that those with the “broadest shoulders” should be held accountable for obstructing public finances. The Telegraph report details a Treasury source who said big changes are being considered for CGT, but a lot can change before the autumn statement in mid-November.

A Treasury spokesman also said Sunak and Hunt agreed that “everyone should contribute more taxes in the years to come.”

How much should capital gains tax increase?

Capital gains tax expected to rise £15 billion this tax year which represents about 1.5% of the total contribution of the Treasury, according to the report of the Office for Budget Responsibility.

When is the fall 2022 statement?

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What SWS Capital Berhad (KLSE:SWSCAP) gained 28% in stock price doesn’t tell you https://katmasters.com/what-sws-capital-berhad-klseswscap-gained-28-in-stock-price-doesnt-tell-you/ Mon, 31 Oct 2022 22:20:54 +0000 https://katmasters.com/what-sws-capital-berhad-klseswscap-gained-28-in-stock-price-doesnt-tell-you/ SWS Capital Berhad (KLSE: SWSCAP) Stocks continued their recent momentum with a 28% gain in the past month alone. Unfortunately, last month’s gains hardly offset last year’s losses, with the stock down another 43% over that time. Given that its price has surged, given that almost half of Malaysian companies have price-to-earnings (or “P/E”) ratios […]]]>

SWS Capital Berhad (KLSE: SWSCAP) Stocks continued their recent momentum with a 28% gain in the past month alone. Unfortunately, last month’s gains hardly offset last year’s losses, with the stock down another 43% over that time.

Given that its price has surged, given that almost half of Malaysian companies have price-to-earnings (or “P/E”) ratios below 13x, you can consider SWS Capital Berhad as a stock to avoid entirely with its 35.9x P/E ratio. However, the P/E may be quite high for a reason and it requires further investigation to determine if it is warranted.

For example, consider that SWS Capital Berhad’s financial performance has been poor lately as its profits have declined. Many may expect the company to still outperform most other companies in the coming period, which has kept the P/E from crashing. You really hope so, otherwise you pay a pretty high price for no particular reason.

Check out our latest analysis for SWS Capital Berhad

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While there are no analyst estimates available for SWS Capital Berhad, take a look at this free data-rich visualization to see how the business is doing on profit, revenue, and cash flow.

Is there enough growth for SWS Capital Berhad?

The only time you’d be really comfortable seeing a P/E as high as SWS Capital Berhad’s is when the company’s growth is on track to definitely outperform the market.

Looking back, last year brought a frustrating 51% drop in the company’s bottom line. At least EPS managed to not fully revert to three years ago overall, thanks to the prior growth period. It therefore seems to us that the company has had a mixed result in terms of earnings growth during this period.

Comparing that to the market, which is expected to grow 13% over the next 12 months, the company’s momentum is weaker based on recent mid-term annualized results.

In light of this, it is alarming that SWS Capital Berhad’s P/E sits above the majority of other companies. Apparently, many of the company’s investors are much more optimistic than suggested lately and aren’t willing to give up their shares at any cost. Only the most daring would assume that these prices are sustainable, as the continuation of recent earnings trends should weigh heavily on the stock price going forward.

The last word

SWS Capital Berhad’s P/E is booming, as is its stock over the past month. As a general rule, we prefer to limit the use of the price/earnings ratio to establishing what the market thinks of the overall health of a company.

Our review of SWS Capital Berhad revealed that its three-year earnings trends are not impacting its high P/E as much as we would have expected, given that they look worse than current market expectations. . When we see weak earnings with slower growth than the market, we suspect the stock price may decline, driving down the high P/E. Unless recent medium-term conditions improve significantly, it is very difficult to accept these prices as reasonable.

We don’t want to rain too much on the parade, but we also found 5 warning signs for SWS Capital Berhad (2 are potentially serious!) of which you should be aware.

Sure, you might also be able to find a better stock than SWS Capital Berhad. So you might want to see this free collection of other companies with P/Es less than 20x and strong earnings growth.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Dow closes 800 points higher on Friday, posts fourth straight week of gains https://katmasters.com/dow-closes-800-points-higher-on-friday-posts-fourth-straight-week-of-gains/ Fri, 28 Oct 2022 21:33:00 +0000 https://katmasters.com/dow-closes-800-points-higher-on-friday-posts-fourth-straight-week-of-gains/ Shares rose on Friday despite a tumble in Amazon shares after economic data pointed to slowing inflation and stable consumption. The Dow Jones Industrial Average closed at 828.52 points, or around 2.6%, up at 32,861.80. The S&P 500 added almost 2.5%, to close at 3,901.06. The Nasdaq Composite ended up around 2.9%, closing at 11,102.45. […]]]>

Shares rose on Friday despite a tumble in Amazon shares after economic data pointed to slowing inflation and stable consumption.

The Dow Jones Industrial Average closed at 828.52 points, or around 2.6%, up at 32,861.80. The S&P 500 added almost 2.5%, to close at 3,901.06. The Nasdaq Composite ended up around 2.9%, closing at 11,102.45.

On a weekly basis, the major indices made notable gains. It was the fourth consecutive positive week for the Dow Jones, the first since a five-week streak ending in November 2021. The 30-stock index is up 5.7% this week in its best performance since may. It’s also on track for its best month since January 1976.

The S&P 500 and Nasdaq are up 3.9% and 2.2%, respectively, on the week.

The stock market fractured this week as investors dumped tech stocks following weak earnings and outlook from Microsoft, Alphabet and Meta and turned to economically sensitive stocks that will benefit if the U.S. economy can head off. a recession.

At the same time, investors found hope in data released during the week indicating that inflation could ease, increasing optimism that the Federal Reserve could break its rate hike trend. 75 basis points after the November meeting.

“The inflation data really wasn’t that bad. Earnings weren’t great, but not terrible,” said Megan Horneman, chief investment officer at Verdence. “When you have that middle of the road, it helps stock markets.”

Amazon plunged 6.8% after the company posted weaker-than-expected quarterly revenue and issued a disappointing fourth-quarter sales forecast on Thursday. Apple shares ended Friday up 7.5%. The tech giant on Thursday reported weaker-than-expected iPhone revenue but beat Wall Street estimates for quarterly profit and revenue.

Apple and other better performers like Intel have given investors a foothold in what some see as a particularly tumultuous tech sector, subsequently putting upward pressure on the tech-heavy Nasdaq. said Jay Hatfield, CEO of Infrastructure Capital Management. He said the market was also boosted by oil giants Chevron and Exxon Mobil, up around 1.2% and 2.9%, respectively, after the two said they beat expectations before the bell.

“Apple is really the only star, if you will, of mega-cap tech stocks,” Hatfield said. “It’s just a single market where bad is terrible, but OK is good, so on a relative basis it’s spectacular.”

The market was boosted after the price index for core personal consumption expenditures in September rose 0.5% from the previous month and 5.1% from a year ago, still high but generally as expected. This is the Federal Reserve’s favorite inflation indicator. Personal spending rose 0.6%, more than expected, the data showed.

Read the coverage of the mercado de hoy en español here.

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Roth IRA Investment Strategies to Maximize Tax-Free Wealth | IRA https://katmasters.com/roth-ira-investment-strategies-to-maximize-tax-free-wealth-ira/ Tue, 18 Oct 2022 14:43:00 +0000 https://katmasters.com/roth-ira-investment-strategies-to-maximize-tax-free-wealth-ira/ Roth IRAs can help you pay a lower tax rate on your retirement savings. Roth accounts offer tax advantages when funds are withdrawn in retirement. This differs from traditional IRAs where tax benefits are realized when funds are contributed to the IRA. Here’s an overview of how you can increase the value of your Roth […]]]>

Roth IRAs can help you pay a lower tax rate on your retirement savings. Roth accounts offer tax advantages when funds are withdrawn in retirement. This differs from traditional IRAs where tax benefits are realized when funds are contributed to the IRA. Here’s an overview of how you can increase the value of your Roth IRA.

Try these strategies to maximize the benefits of a Roth IRA:

  • Roth IRAs are especially useful for young savers in retirement.
  • Aim to take Roth IRA distributions after age 59½ when withdrawals are tax-free and penalty-free.
  • Pay attention to the five-year holding period.
  • Contribute to a Roth IRA in years when you are in a lower tax bracket.
  • Invest in a Roth IRA as soon as possible to take advantage of compound interest growth.

How Roth IRAs Work

A Roth IRA is an individual retirement account created by the Taxpayer Relief Act in 1997. “Roth IRAs were designed by Senator William Roth as a way to provide additional tax benefits to investors, without adding additional tax burdens to Americans “says Kristina Keck. , vice president of Woodruff Sawyer in San Francisco.

Roth IRAs differ from traditional IRAs in that your contributions to the account are made after tax. “State taxes, if any, and federal taxes are paid at the contribution. Contributions grow tax-deferred and distributions are taken tax-free,” Keck says. “The key to remember here is that the IRS collects your taxes at the contribution. Traditional IRAs are pre-tax, contributions grow tax-deferred, and distributions are taxed the year they are taken at the tax rate. So in this case the government has to wait to claim your taxes until the distribution.

When you save in a Roth or traditional IRA, you decide whether to pay taxes on your retirement savings now or when you withdraw the money in retirement. “Basically, a Roth IRA provides tax benefits in the future, and a traditional IRA provides tax benefits in the year the contribution is made,” says Heather Comella, Certified Financial Planner at Origin, a wellness platform financial employee, based in California.

Roth IRAs are especially good for young retirement savers

Roth IRAs offer the greatest rewards to people who fund them from an early age. “If you’re in your twenties, you’re probably in a lower tax bracket,” Keck says. “If a young person contributes to a Roth IRA and, for example, is in a 24% federal tax bracket, they will pay 24% tax in the year they contribute.”

These contributions can grow for 30 or 40 years tax-free. “If the investor were to progress in career and income, they may very likely be in a higher tax bracket in retirement,” Keck says. “If the individual was in a 37% tax bracket upon retirement, that individual will enjoy decades of compounded returns and receive tax-free distributions.”

If the same person had contributed to a traditional IRA in their twenties, their tax burden would be significantly higher in retirement. In this scenario, the retirement saver would have 24% federal tax deferred, contributions would increase tax-deferred, but upon distribution they would pay 37% higher taxes.

Benefits of saving for retirement in a Roth IRA

Investments in a Roth IRA enjoy tax-free growth, and distributions can generally be made after age 59.5 tax-free and without penalty. There are also no minimum distribution requirements, so an investor can leave the money in this account for the long term to continue growing tax-free.

Disadvantages of Saving for Retirement in a Roth IRA

A five-year holding period applies to contributions so that withdrawals are tax-free. “If the five-year period is not respected, the income will be subject to tax,” says Comella. Also, you may not be able to contribute to a Roth IRA if you earn too much. “There are income limits for those who are eligible to make a Roth IRA contribution,” Comella says.

Invest in a Roth IRA ASAP

The optimal Roth IRA strategy is to contribute to an account as soon as possible, and to do so while you are in a lower tax bracket. “This will give you a longer track for compound growth in your account,” Keck says. “Also, make sure that if you’re married, you contribute for your spouse. The IRS allows a spouse to establish a Roth IRA even if they are not working.

Use Roth IRA funds to help family members

Roth IRAs can be useful in estate planning if you may not need the money in retirement. “In this case, your beneficiary will receive the account and will not be affected by a tax bill,” says Keck.

Roth IRAs can also be a good educational savings vehicle, as retirement savers can receive distributions for certain educational purposes. “They can do this as long as the account has been established for at least five years,” Keck says.

Consider a Roth IRA Conversion

If you’ve already saved significant funds in a traditional IRA, it’s not too late to benefit from a Roth IRA. You may be able to convert some of the funds from a traditional IRA to a Roth if you’re willing to pay tax on the converted amount.

One strategy for Roth IRA conversions is to “fill” relatively low tax brackets with the amount you are converting. “Often, the best time to do this is right after someone retires, but before they begin their mandatory IRA distributions,” says John Roessler, senior financial planner at Kovitz, a financial planning firm based in Chicago. “In this situation, Roth IRA holders can liquidate assets with long-term capital gains to fund living expenses at relatively low tax rates and fill low ordinary tax brackets with conversion funds. Roth.”

Generate tax-free wealth

Roth IRAs work well for retirement savers because they allow you to pay tax on IRA contributions now, but then withdraw them tax-free in retirement. “It means your money is working for you, growing and accumulating over time, rather than sitting in Uncle Sam’s pocket,” says Brian Greenberg, chief executive of Insurist, a financial services provider based in Scottsdale, Arizona.

To get the most benefits from a Roth IRA, contribute as much as you can to your Roth IRA each year, up to the annual limit. Even small contributions can grow to a large amount over time. For example, if you contribute $6,000 per year to a three-year Roth IRA in your early 60s and the account is growing at an average rate of 7% per year, the balance could grow to over $29,000 by age 70. . huge difference in the amount of money you’ll have saved for retirement,” says Greenberg.

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CORRECT and REPLACE P&G recommends shareholders reject TRC Capital Investment Corporation’s mini-tender offer https://katmasters.com/correct-and-replace-pg-recommends-shareholders-reject-trc-capital-investment-corporations-mini-tender-offer/ Fri, 14 Oct 2022 22:22:37 +0000 https://katmasters.com/correct-and-replace-pg-recommends-shareholders-reject-trc-capital-investment-corporations-mini-tender-offer/ CINCINNATI–(BUSINESS WIRE)– Please replace the version with the following corrected version due to revisions. The updated version reads as follows: P&G recommends shareholders reject TRC Capital Investment Corporation’s mini-tender offer The Procter & Gamble Company (NYSE:PG) has been notified of an unsolicited “mini-tender offer” by TRC Capital Investment Corporation to purchase up to 1,000,000 shares […]]]>


Please replace the version with the following corrected version due to revisions.

The updated version reads as follows:


P&G recommends shareholders reject TRC Capital Investment Corporation’s mini-tender offer

The Procter & Gamble Company (NYSE:PG) has been notified of an unsolicited “mini-tender offer” by TRC Capital Investment Corporation to purchase up to 1,000,000 shares of common stock in the company at a price of $118.63 per share in cash. TRC Capital Investment Corporation’s offer price is approximately 4.54% lower than the closing price of $124.27 of P&G common stock on October 7, 2022, the last trading day before the date of the offer (October 10, 2022). P&G does not approve of TRC Capital Investment Corporation’s offer and recommends that shareholders not tender their shares.

P&G is in no way associated with TRC Capital Investment Corporation or its mini-tender offer.

P&G does not approve of TRC Capital Investment Corporation’s offer and again recommends that shareholders not tender their shares to this unsolicited mini-tender offer because the offer is at a lower price than the current price. of P&G’s stock market and is subject to numerous conditions. In addition, mini-takeover bids, such as that of TRC Capital Investment Corporation, avoid many of the investor protections afforded to larger takeover bids, including the filing of disclosure and disclosure documents. other tender offer documents with the United States Securities and Exchange Commission (SEC). and other procedures required by United States securities laws.

The SEC has issued “Investor Guidance” regarding mini-offer bids, noting that some bidders, by bidding below market prices, “hope they will catch investors off guard if investors do not compare the offer price to the current market price.The SEC notice can be viewed on the SEC’s website at http://www.sec.gov/investor/pubs/ minitend.htm.

P&G urges common stockholders to obtain current market quotations for their common stock, to consult their broker or financial advisor, and to exercise caution regarding the TRC Capital Investment Corporation’s offer.

P&G recommends that ordinary shareholders who did not respond to TRC Capital Investment Corporation’s offer take no action. P&G common stockholders who have already tendered their shares may withdraw their shares by providing the written notice described in TRC Capital Investment Corporation’s offer materials prior to the expiration of the offer, currently scheduled for 12:01 a.m., New York time. York, November 8. , 2022.

P&G urges brokers, dealers and other market participants to review the SEC’s recommendations to broker-dealers in these circumstances, which can be viewed on the SEC’s website at http://www.sec .gov/divisions/marketreg/mintenders/sia072401.htm.

P&G requests that a copy of this press release be included with all distributions of materials relating to TRC Capital Investment Corporation’s mini-tender offer.

About Procter & Gamble

P&G serves consumers worldwide with one of the strongest portfolios of trusted, quality leading brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy® , Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks® and Whisper®. The P&G community includes operations in approximately 70 countries around the world. Please visit https://www.pg.com for the latest news and information about P&G and its brands. For other P&G news, visit us at https://www.pg.com/news.

Category: PG-IR

Source: Procter & Gamble

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Glaziers don’t want to sell Man Utd, says UK tycoon Ratcliffe https://katmasters.com/glaziers-dont-want-to-sell-man-utd-says-uk-tycoon-ratcliffe/ Tue, 11 Oct 2022 22:31:23 +0000 https://katmasters.com/glaziers-dont-want-to-sell-man-utd-says-uk-tycoon-ratcliffe/ Manchester United owners Avram Glazer (L) and Joel Glazer Oli SCARF Text size Manchester United owners, the Glazer family, are unwilling to sell the Premier League club, according to British billionaire Jim Ratcliffe. United fan Ratcliffe, owner of chemical group Ineos, was interested in buying the club from Old Trafford after his unsuccessful bid to […]]]>

Manchester United owners Avram Glazer (L) and Joel Glazer

Oli SCARF

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