More Ways To Increase Your After-Tax Investment Returns

You are receiving this email because you signed up to receive Bob Carlson's free e-letter Retirement Watch Weekly, or you purchased a product or service from its publisher, Eagle Financial Publications. [Carlson's Retirement Watch Weekly] [Retirement Reports](www.retirementwatch.com/retirement-resources/) [Retirement Articles](www.retirementwatch.com/retirement-articles/) Brought to you by Eagle Financial Publications More Ways To Increase Your After-Tax Investment Returns by Bob Carlson Editor, [Retirement Watch]( 05/26/2024 SPONSORED [Act Fast to Lock in Annual Returns of 11.1% For Life – Guaranteed!]( [image]( If investors act fast enough, they can LOCK IN a regular source of extra income with annual returns as high as 11.1%, guaranteed for life. That’s 761% greater than the average dividend of an S&P 500 stock). 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It might make sense to wait if it will mature into a long-term gain in only a few weeks but waiting longer might not be worth the tax break. When you do take short-term gains, look for losses you can take to offset them. Know your tax bracket. The tax on your gains can fluctuate with your tax bracket. If your income or deductions vary from year to year, you might factor that into your decision of when to sell. Someone who normally has a very high income might avoid the 3.8% net investment income surtax by selling long-term capital gain assets in a year when other sources of income are lower. Other people might find that lower income one year reduces their long- term capital gains rate below 20%, to 15% or even 0%. In 2022, the long-term capital gains tax rate is 0% for single tax- payers with taxable income up to $41,675 and for married couples filing jointly with taxable income up to $83,350. The 15% long-term gains rate applies to single taxpayers with taxable income up to $459,750 and married couples filing jointly with taxable incomes up to $517,200. Only above those income levels will the 20% maximum rate begin. The bottom line is that you might have an opportunity to take gains at a lower tax cost by selling in a year when you retire, lose a job, work fewer hours or business is down. When large tax deductions one year reduce your taxable income, that also could be a good time to take some extra capital gains. Also, consider other taxes in addition to the taxes on the gains when planning sales of profitable investments. The gains will increase your adjusted gross income, and a higher adjusted gross income can trigger the Stealth Taxes, such as income taxes on Social Security benefits, the Medicare premium surtax, net investment income tax and more. Many people take large gains in one year only to find that the higher gains triggered one or more of the stealth taxes, increasing their effective taxes on the sales. It might be better to spread the sales over several years. Consider the potential for triggering or increasing the Stealth Taxes before deciding to sell profitable investments. Make gifts of gains, but not losses. You can give investment assets to family members and let them sell the assets. This could reduce the family’s taxes when the person receiving the gift, usually a child or grandchild, is in a lower tax bracket. The tax rate on long-term capital gains might change from 20% to 15%, or even 0%. (The person receiving a gift has the same tax basis in the asset that you did, so he or she will have the same amount of capital gain as you would have.) You want to be sure that the person receiving the gift isn’t subject to the Kiddie Tax, which would make the gain taxable at the parent’s top tax rate instead of the child’s rate. You don’t want to give an asset that has declined in value. The recipient’s basis will be the lower of your cost and the current fair market value. That means no one would deduct the loss in value that occurred while you owned the asset. It is better for you to sell the asset and deduct the loss on your return. Then, you can give the sale proceeds or something else. SPONSORED [Don't Miss the Next AI Payout Opportunity (It's Coming Soon)]( [image]( Louis Navellier recently revealed a unique way to tap into the AI craze without buying any of the big names like Amazon, Google, or Facebook. It involves a series of consistent, retirement-boosting payouts, and the next one is coming soon. [Click here before you miss it.]( [CLICK HERE...]( Give appreciated assets to charity. When your charitably inclined, consider donating an appreciated investment instead of cash. You’ll be able to deduct the fair market value of the asset on the date of the gift. Plus, neither you nor the charity will owe any capital gains taxes on the appreciation that occurred while you owned the asset. Giving an appreciated asset is likely to generate more benefits than writing a check to charity. Hold investments for life. When assets held in a taxable account are inherited, the heir increases the tax basis to the fair market value as of the date of the previous owner’s death. No capital gains taxes are imposed on the appreciation that occurred during the previous owner’s lifetime. Since the federal estate tax doesn’t apply to most estates, a good strategy when you own investments with substantial gains is to continue holding them so the next generation can inherit and sell them without incurring any taxes. To a better retirement, [Bob Carlson] Bob Carlson Editor, Retirement Watch Weekly Editor’s Note: Congress is spurring on the most dangerous retirement threat of the last 50 years. One of America’s top retirement researchers reveals the deadly truth behind this government move… plus the ONLY way to fully protect your wealth in the coming months. [Click Here for the Full Story.]( SPONSORED [Don't let the market burn you out]( [image]( You can either maintain full throttle, navigating the turbulence, or opt for a smoother ride with greater control. Traditional sources of trading insights often rely on lagging indicators and historical data, leaving you a step behind, struggling to keep pace and risking burnout. Imagine having access to a [revolutionary dual-patented tool]( that leverages past data to forecast future stock movements effortlessly. Our Pro Trader is ready to unveil 4 real-time A.I. scanned stock trends in this complimentary [LIVE A.I. TRAINING CLASS.]( [CLICK HERE...]( Want More Retirement Advice? Check out my website, [RetirementWatch.com](, where you’ll find hundreds of free articles covering every aspect of retirement planning. Popular Posts: [The Overlooked Retirement Time Bomb]( [Understanding Rules of IRA Contributions]( [Strategies to Reduce Alternate Minimum Tax]( [Avoiding Expensive IRA Mistakes]( New to the Retirement Watch Community: SeniorResource.com You want to leave your family and friends with things that will make their lives better, right? But sometimes, even the nicest gifts can cause problems. There are things you might leave to your loved ones that could actually be a bit of a hassle for them to deal with. [Here are 8 things that might be better to sell or take care of before you leave them to your heirs.]( About Bob Carlson: [Bob Carlson]Robert C. Carlson is the author of the books The New Rules of Retirement and Retirement Tax Guide, editor and investment director of the popular retirement newsletter, Retirement Watch, and editor of the free weekly e-letter, Retirement Watch Weekly. Bob is a frequent speaker at investment conferences around the country, and you can also hear Bob as a featured guest on nationally-syndicated radio shows, such as The Retirement Hour, Dateline Washington, Family News in Focus, The Michael Reagan Show, Money Matters and The Stock Doctor. About Us: Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have. 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