Home
Latest Tax News
Tax Articles
Additional Resources
Retire Financially Free
Other Interesting Articles

 
 


Death & Taxes

We have Information to Help You with Either
Got Question for a CPA Mom?


Need Some Help?

CPA & Tax Services we Offer


IRS wants you to retire Financially Free!     We will answer your questions and give you options about how to become Financially Free when you retire

Tax answers/options when you sell your Home.      We will answer your questions about the tax free home sales and give you options on tax free exchanges

So, You got a letter from IRS?  We can help.    Letters from IRS are scary. We will answer your questions at no charge.

S-Corp, LLC, C-Corp, Partnership - Your Choice?    Selecting the correct Business Entity is confusing.  We will give you the tax options of each Business Entity.

How not to pay taxes when you sell income property.    We will explain how to do a tax free exchange & not pay taxes when you sell your income property.

 To pay for Services - Please click on Paypal Logo below


  • Google And SEC In Tax Dispute
    Google and the Securities and Exchange Commission have been in dispute since March over "various issues" including the way in which Google accounts for income tax, the search giant revealed on Friday.Comment
  • Open Tax Solver 4.06 (Default Branch)
    OTS is an easy program for calculating personal income tax form entries and taxes-owed or refund due. It handles forms such as US-Fed-1040, with forms A, B, C, D, AMT worksheets, and state income taxes, as well as Canada and UK income taxes. License: GNU General Public License (GPL) Changes: State Tax updates for VA, OH, and NY for 2006 were added. The OTS package also contains US 1040, with Scheds. A, B, C, D, and updates of State Taxes for MA, NJ, PA, NC and CA for 2006. Some improvements were made to the GUI.
  • Filing Your State Tax Returns
    Most states collect income taxes, too. And most want them on the same date your federal return is due. Check out Bankrate's updated state tax roundup.
  • Host Of Politicians
    Officials of the Income Tax Department and Enforcement Directorate are preparing to get the Swiss bank lockers of Pune horse owner Hasan Ali opened.Image: http://www.ibnlive.com/pix/common/bullet.gif Allegations are flying thick and fast that Hasan is acting as a front man for a host of politicians, industrialists and film financiers and laundering money. Please explain the highlighted grop of words.


How to minimize your taxes on wealth



Taxes on wealth or simply wealth tax is the tax levied on the value of wealth owned by a person. As the term 'wealth' carries with it a broader meaning, generally capital transfer taxes (which include inheritance tax and gift tax), property tax, and capital gains taxes are some times invariably referred to as wealth taxes.


Taxes on wealth were first introduced in Europe, aimed at reducing the growing wealth gap between the rich and the poor. It was meant to raise revenue for addressing pressing social requirements and also to discourage the attitude towards amassing wealth.


Still, in countries across the world, majority of wealth is concentrated at the hands of fairly small number of people. Ideally taxes on wealth cuts down the disparities in wealth rather than the income, which actually is the determinant factor on how the scales are weighed for the next generations.
Also, taxes on wealth can bring about vertical as well as horizontal equity, which income tax fails to achieve. For example, neither a wealthy person nor a poor one with no income will pay income tax. But the wealthy ones need to cough up wealth tax while the poor need not.


But, as critics puts down, taxes on wealth can actually cause inefficiency by discouraging wealth producing economic initiatives. Also, the revenue generated by imposing taxes on wealth may not be that productive as the theory suggests. The wealthiest form only a small percentage of the population and by nature they are adept at avoiding taxes while remaining themselves within the contours of law.


Taxes on wealth comes in two forms - the capital transfer taxes that are levied when wealth change hands and the annual wealth taxes. Capital transfer taxes can occur either at death - also called inheritance tax - or via donation (gift tax). Some people tend to believe that Capital Gains tax to be a form of taxes on wealth. But in realty, capital gains tax is the taxation on the income obtained on capital and not a wealth tax on the capital.


Ideally, taxes on wealth should not be severe on the tax payers even if they have lots of wealth. Instead, after the minimum slab of no taxation, the taxes on wealth percentage should increase at increments, depending on the value of wealth in dollars. Such a fairer taxation not only increases the revenue but also goes a long way in bringing down the inequality aspect as well.


But with intelligent investing, one can save a lot that other wise goes as wealth tax. But that requires careful thought and advanced planning. May be a tax professional could help one in this regard.


Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.




The general information in this publication is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purpose of avoiding tax penalties.

  

 

 

 

Privacy Policy ......... About Us  ......  Disclaimer ..........   Copywrited 2005  - 2006 & Developed by  Tax Net Inc