Gain from the sale of capital assets held for more than one year (long-term capital gain) is generally taxed at preferential rates (the highest such rate is currently 20%) for non-corporate taxpayers.
Section 1061 increased the requisite holding period for long-term gain preferential rates from one year to three years with respect to gain attributable to “applicable partnership interests” (APIs).
Under Section 1061, a partnership interest qualifies as an API if it is directly or indirectly transferred to or held by a taxpayer in connection with the performance of substantial services by the taxpayer (or a related person) in an “applicable trade or business” (ATB).
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John Hancock Tax-advantaged Dividend Income Fund Notice to Shareholders - Sources of Distribution
BOSTON , Jan. 29, 2021 /PRNewswire/ - John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD ) (the "Fund"), a closed-end fund managed by John Hancock Investment Management LLC and subadvised by both Manulife Investment Management (US) LLC, and Wells Capital Management Incorporated, announced today sources of its monthly distribution of $0.1380 per share paid to all shareholders of record as of December 31, 2020 , pursuant to the Fund's managed distribution plan.
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This notice provides shareholders of the John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD ) with important information concerning the distribution declared on December 21, 2020 , and payable on January 29, 2021 . No action is required on your part.
One Governor Hopes To Pile Onto Joe Biden's Capital Gains Tax Hike With A State-Level Cash Grab
If President Joe Biden gets his way, the federal capital gains tax rate will double. Meanwhile some ... [+] governors now want to pile on with state-level tax increases on capital gains and other income.
Washington State Governor Jay Inslee (D) now wants to tax those gains, which were a rare economic bright spot for many individuals and families in what was an otherwise tough year for many households' finances. If Governor Inslee is successful, his constituents are looking at the prospect of a capital gains tax double whammy in 2021, as President Joe Biden is also calling for a federal capital gains tax increase that, if enacted, would result in the U.S.
How To Protect Clients From an IRS Audit
An IRS audit is a common fear of business clients, especially if they fall into the "target" groups of Schedule C filers, pass-through entities and millionaires.
Although most clients may never have to experience an IRS audit , professionals need to hope for the best, prepare for the worst and put clients' minds at ease.
There are three useful informational resources accounting professionals can rely on for audit guidance:
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Maine businesses hope for vaccines, tax and regulation relief to make it through 2021 | State |
A list of requirements to allow a person to get a haircut are posted May 1, 2020, at Kilroy's Haircutters in Brunswick, Maine. Gov. Janet Mills allowed barbershops and some other businesses to reopen under strict guidelines to help prevent the spread of the coronavirus.
"Some economic storms can be so sudden and massive, and rare, that it is virtually impossible to get by without significant help from whatever sources are available," David Clough, state director for Maine's National Federation of Independent Business (NFIB), told The Center Square. "Everyone from political leaders to customers to landlords are important and typically willing partners in helping businesses survive the epic storm.
Washington state lawmakers target Bill Gates, Jeff Bezos, and other billionaires with wealth tax
A new proposed wealth tax in Washington state would impose a 1% tax on billionaires, affecting Seattle-area tech and business leaders such as Amazon CEO Jeff Bezos, Microsoft co-founder Bill Gates, and about 100 other ultra-wealthy residents.
House Bill 1406 would produce an estimated $2.25 billion in 2023 and $2.5 billion in 2024, according to Rep. Noel Frame (D-Seattle), chair of the state's House Finance Committee who introduced the bill Wednesday with House Majority Leader Pat Sullivan (D-Covington).
IRS Issues Final Carried Interest Regulations | Stinson LLP - JDSupra
While a one-year holding period is generally required for long-term capital gains, Section 1061 generally imposes a three-year holding period requirement in order to receive long-term capital gain treatment for gains allocated (or otherwise recognized) with respect to an "applicable partnership interest" (API).
Thus, an API generally includes a carried interest held by the sponsor (or manager) of an investment fund (such as a private equity fund or hedge fund) that entitles the sponsor (or manager) to a share of the fund's future profits. An API would also include a partnership interest in a carry vehicle or a general partner entity issued to individuals in exchange for their performance of investment management services.
Happening on Twitter
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JUST POSTED: In its final days, Trump's Treasury Dept quietly rollback sanctions imposed in 2017 on billionaire Isr… https://t.co/jOPLafvB45 EricLiptonNYT (from Washington, DC) Mon Jan 25 03:10:43 +0000 2021
It's official: Janet Yellen is the 78th US Treasury Secretary (and 1st female ever to hold the post). Final vote:… https://t.co/Uais3f5gAb byHeatherLong (from Washington, DC) Mon Jan 25 23:23:17 +0000 2021
The Trump admin moved in its final days to ease sanctions on an Israeli billionaire who had been punished by the Tr… https://t.co/j4fPlgSmmN CREWcrew (from Washington, D.C.) Mon Jan 25 23:30:41 +0000 2021
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