Assume that I have $400,000 worth of investments, and am looking to cash all of it in at once. What would the initial tax fee be, and what would the end of year tax rate be?
Posted by Eaquae Legit (Member # 3063) on :
I don't know, but if you're looking for a charitable investment, look no further. Posted by Primal Curve (Member # 3587) on :
I'm not a tax expert. I believe there are better people out there who can answer that.
From an investment perspective, my only response is:
WHY?! Posted by TheHumanTarget (Member # 7129) on :
Sometimes bad decisions are the only decisions.
Posted by Primal Curve (Member # 3587) on :
That's a weak answer.
Posted by TheHumanTarget (Member # 7129) on :
Seeing as how you have no insight into my situation, I'd have to say that your opinion is fairly irrelevant.
Posted by Dagonee (Member # 5818) on :
It totally depends on what the investments are, how long you've owned them, and how you acquired them. Your question is, unfortunately, unanswerable as posed.
Posted by TheHumanTarget (Member # 7129) on :
Thanks Dags. I'll come back with more information later.
Posted by Bokonon (Member # 480) on :
What Dag said.
And what Eaquae Legit said too
-Bok
Posted by Nighthawk (Member # 4176) on :
Invest it all on canned food and shotguns.
Actually, I have no idea. I've never had that much at one time.
Posted by Enigmatic (Member # 7785) on :
He's going to buy a castle, I just know it.
--Enigmatic
Posted by El JT de Spang (Member # 7742) on :
Diversify. Bury half in mayonnaise jars in your backyard, and take the other half down to the dog track and bet on the one that does his business on the way to the gate.
Posted by Primal Curve (Member # 3587) on :
quote:Originally posted by TheHumanTarget: Seeing as how you have no insight into my situation,
Exactly why your answer is weak.
Posted by ElJay (Member # 6358) on :
Primal, don't be a jerk this time, please.
Posted by TheHumanTarget (Member # 7129) on :
ElJay, don't worry about PC. Some people just aren't worth the expended effort it would take to change them.
Posted by ElJay (Member # 6358) on :
Sorry I don't have any useful advice for you, THT. Good luck. And the best to your family.
Posted by fugu13 (Member # 2859) on :
If you have that much money to be cashed out, the only sensible approach is to seek the advice of an accountant.
Posted by TomDavidson (Member # 124) on :
fugu's entirely right. If things are dire enough that you need to cash in a nest egg that large, you want to talk to a professional ASAP.
Posted by Morbo (Member # 5309) on :
Fugu's right, cashing out that much in investments requires professional advice to minimize taxes. And Dag's right more info is required to answer the question. But I wouldn't provide more info than you already have on a public forum. Boon might (I don't want to speak for her) provide you with some tax advice. But get it via email! It's not jatraqueros you should worry about (we're all as honest as the day is long ) but the rest of the internet getting into your business.
quote:Originally posted by TheHumanTarget: ElJay, don't worry about PC. Some people just aren't worth the expended effort it would take to change them.
<snickers>
Posted by Morbo (Member # 5309) on :
Ten Husbands
A young man married a beautiful woman who had previously divorced ten husbands.
On their wedding night, she told her new husband, "Please be gentle, I'm still a virgin".
"What?" said the puzzled groom. "How can that be if you've been married ten times?!"
"Well, husband #1 was a Sales Representative; he kept telling me how great it's going to be.
Husband #2 was in Software Services; he was never really sure how it was supposed to function, but he said he'd look into it and get back to me.
Husband #3 was from Field Services; he said everything checked out diagnostically but he just couldn't get the system up.
Husband #4 was in Telemarketing; even though he knew he had the order, he didn't know when he would be able to deliver.
Husband #5 was an Engineer; he understood the basic process but wanted three years to research, implement, and design a new state-of-the-art method.
Husband #6 was from Finance and Administration; he thought he knew how, but he wasn't sure whether it was his job or not.
Husband #7 was in Marketing; although he had a product, he was never sure how to position it.
Husband #8 was a psychiatrist; all he ever did was talk about it.
Husband #9 was a gynaecologist; all he did was look at it.
Husband #10 was a stamp collector; all he ever did was.. .. God I miss him!
But now that I've married you, I'm so excited!"
"Good!" said the husband, "but why?"
"You're an IRS agent...... This time I KNOW I'm gonna get screwed!"
Posted by Bean Counter (Member # 6001) on :
You would be better off to leave that much money in whatever investment it represents and borrow what you might need against it, if they are the result of Capital Gains you are going to get clobbered twice.
BC
Posted by Kwea (Member # 2199) on :
quote:Originally posted by Bean Counter: You would be better off to leave that much money in whatever investment it represents and borrow what you might need against it, if they are the result of Capital Gains you are going to get clobbered twice.
BC
Why do you feel qualified to speak about this at all? What degrees do you have in this field? What type of experience?
It is bad enough when you post about things teat don't matter and are ignorant about them. This is something that matters, and you may very well be the last person on Earth who they should listen to.
Last I checked grunts weren't tax officers, at least not most of them. Stick to polishing boots.
Posted by King of Men (Member # 6684) on :
Hey, you ask for investment advice on a free forum, you deserve what you get. But quite apart from that, BC's advice seems to be at least an option to be looked at. It could be impossible for some reason, or it might turn out to be more expensive than cashing it out, but I don't see where it should be dismissed out of hand.
Posted by Samprimary (Member # 8561) on :
Teh Intarweb Forums are not the place to get this sort of information. Get yourself a financial consultant.
Posted by fugu13 (Member # 2859) on :
In many situations BC would be right. We don't have enough information here, though.
Posted by TheHumanTarget (Member # 7129) on :
I have an accountant and am waiting for information from him. It was more the nature of my impatience that led me to ask the question here. Thanks for the good (and the bad) advice.
Posted by Tresopax (Member # 1063) on :
quote:Sometimes bad decisions are the only decisions.
Only when you haven't considered enough options.
Posted by TheHumanTarget (Member # 7129) on :
quote: Only when you haven't considered enough options.
While I'm sure most of you have the best intentions, I'd appreciate it if you'd leave my decision-making skills out of your comments. I had a specific (although admittedly not specific enough) question, and didn't solicit anyone’s input on why I'm choosing to do this.
Thanks.
THT
Posted by TrapperKeeper (Member # 7680) on :
initially I suspected it was a question for finance homework.
Posted by cheiros do ender (Member # 8849) on :
quote:Assume that I have $400,000 worth of investments, and am looking to cash all of it in at once. What would the initial tax fee be, and what would the end of year tax rate be?
$0.00 under the FairTax.
Posted by TheHumanTarget (Member # 7129) on :
Cheiros,
That's an interesting link, although I don't think it will happen any time soon.
Posted by Primal Curve (Member # 3587) on :
Okay, I'll be less caustic in this response.
Even without the why of the situation, it's impossible to give you an answer as the term "investment" is far too broad to determine any tax liability.
Examples of investments:
Stocks
Bonds
Real Estate (or REITs)
Stock Options
Tax-Deferred Retirement plans (401k, IRA, etc.)
Roth Retirement Plans
Pension Plans
Classic Cars
Memorabilia
Collectables
Precious Metals
Gems
Etc. Etc. ad nauseum.
All of these investments are taxed differently. So, you see, even without the why, an answer cannot be given without more information.
Professional advice is definitely worth it. With their help, you'll save significantly more money than their advice will cost you.
Posted by TheHumanTarget (Member # 7129) on :
Yes, yes...I'm well aware. Thank you for your insight.
![[Wink]](wink.gif)
![[Smile]](smile.gif)
![[Roll Eyes]](rolleyes.gif)
) but the rest of the internet getting into your business.