"Dividend tax increase" analysis ?

[Delawaredave5]

Dividends will probably be taxed at 30% instead of 15%. Anybody analyze how many years you need to need to hold to offset this ?

Do you think high dividend stocks are "artifically depressed" now because of selling ?

 

[rbmrtn]

They would go back to your regular ordinary income tax rates.

I thought they are slightly overpriced now. If they get sold off because of the impending tax increase I would buy them.

 

[jebmke]

Dividends will probably be taxed at 30% instead of 15%. Anybody analyze how many years you need to need to hold to offset this ?

Do you think high dividend stocks are "artifically depressed" now because of selling ?

Did they go up in 2001 when tax rates went down?

 

[Delawaredave5]

My original question doesn't make any sense.... What I meant was Capital Gains.

With the CG rates going up, are there circumstances where it makes sense to recognize gains now - versus later ?

 

[haha]

The question is posed so broadly that the answer would have to be yes, there are circumstances where it would make sense to recognize gains now, rather than later or perhaps never.

Clarifying what those circumstances might be is a bit trickier, and you have given no information.

Ha

 

[gerntz]

Dividends will probably be taxed at 30% instead of 15%. Anybody analyze how many years you need to need to hold to offset this ?

Do you think high dividend stocks are "artifically depressed" now because of selling ?

Why not do something by Nov 06 to try to stop this from happening?

 

[MichaelB]

Lets please keep elections and politics out of the discussion ... please.

 

[LOL!]

30% is the wrong rate. I think the rate will be 20% or 18% (5-year holdings) which is really not a big deal since we lived with those rates for many years.

One should have plenty of capital loss carryovers, so one shouldn't be paying cap gains taxes anyways.

In other words, nothing to see here, please move along.

 

[kramer]

Did they go up in 2001 when tax rates went down?

The law was signed in May, 2003 -- not in 2001.

It recognizes the fact that dividend income is distributed out of profits that have already been taxed at the corporate level.

 

[MasterBlaster]

30% is the wrong rate. I think the rate will be 20% or 18% (5-year holdings) which is really not a big deal since we lived with those rates for many years.

One should have plenty of capital loss carryovers, so one shouldn't be paying cap gains taxes anyways.

In other words, nothing to see here, please move along.

Au Contraire

Under current law, the capital gains tax rate for all Americans rises from 15 to 20 percent in 2013, while the top dividend rate rises from 15 to 39.6 percent. The new ObamaCare surtax takes the top capital gains rate to 23.8 percent and top dividend rate to 43.4 percent. ​

 

[jebmke]

The law was signed in May, 2003 -- not in 2001.

It recognizes the fact that dividend income is distributed out of profits that have already been taxed at the corporate level.

OK, wrong year. But if nothing changed when the rates went down, then maybe it won't change on the way up. I didn't change my investments in 2003 and won't in 2013.