原文：
The Fine Art of Reducing and Avoiding Ine Taxes
Starting with the Tariff Act of 1913, which enpasses the first ine tax on individuals following the adoption of the Sixteenth Amendment; taxpayers have been zealously attempting to minimize their tax liability. Unfortunately in their desire to achieve this result various schemes have been devised which border on fraud. This article explores some tax planning ideas for individuals which may provide taxpayers the wherewithal to attain their goal-lower ine taxes. It should be noted, however, that before implementing any of the suggested ideas, individuals should review them with qualified counsel.
CAPITAL GAINS AND LOSSES
Under the Tax Reform Act of 1969 the alternative tax on long-term capital gains (gains on the sale of capital assets held for MORE than six months) has been modified. For taxable years beginning after December 31, 1969 the first $50,000 of long-term capital gains, for individuals, estates and trusts, is taxed at 25%. Any net long-term capital gains (i.e. excess long-term capital gains over short-term capital losses) in excess of $50,000 is then subject to an effective maximum tax of 35% (50% of the current maximum tax rate of 70%). Net short-term capital gains (i.e. excess short-term capital gains over long-term capital losses) are still taxed as ordinary ine. At first blush it would appear that significant tax savings could be achieved by structuring sales of capital assets to obtain the benefits of the alternative tax. In reality this is only illusory. The maximum tax savings one can hope to achieve via the alternative tax procedure is only $5,000. EXHIBIT A
Maximum tax on net long-term capital gains 35% Maximum tax on the first $50,000 of long-term capital gain 25% Difference 10% Tax Savings under the Alternative Tax; First $50,000 of
Long-term capital gain *10% $5,000
Probably more interesting is the fact that if the taxpayer’s only ine is long-term capital gains the alternative tax procedure will ALWAYS yields a HIGHER tax than the normal tax putation. This is evidenced by the fact that the normal tax rates are graduated where the alternative tax is a flat 25% on the first $50,000 of long-term capital gains. If the taxpayer's net long-term capital gain is at least $50,000, the alternative tax procedure produces a tax which is higher than the normal tax by $6,480. EXHIBIT B
$50,000 of long-term capital gain at 25% $12500 Tax on $50,000-Schedule Y-1972 Tax Rate Schedules $ 6020 Increase in Tax Using Alternative Method $6480
Also modified by the Tax Reform Act of 1969 was the utilization of net long-term capital losses (i.e. excess long-term losses over short-term gains) to offset ordinary ine. Basically, if an individual has a net capital loss for the current year, he may reduce his ordinary ine up to but not exceeding $1,000. Net short-term capital losses are used to offset ordinary ine on a dollar-for-dollar basis. However, net long-term losses arising after 1969, reduce ordinary ine on a two-for-one basis (i.e. forever $1 reduction against ordinary ine $2 of the long-term loss must be used). It should be noted that in applying capital losses to offset ordinary ine the short-term losses are applied first. Moreover, any losses not used to reduce ordinary ine are carried forward to future years retaining their character as either short-term or long-term losses. Individuals who have numerous stock transactions should separately pute their stock transfer tax (generally shown on the broker’s advice). This tax would be an itemized deduction while increasing the net proceeds on the stock sale. Since the tax has been deducted from the net precedes it
Must be added back when claiming the tax as a separate deduction; otherwise it would be deducted twice. In this manner gains are increased, losses are reduced and the individual obtains a full deduction for the transfer tax at his normal tax bracket. The tax savings achieved by this method is surprisingly high.
Tax planning dictates that a careful analysis of the taxpayer's investment
portfolio is made to ensure that the maximum benefits are achieved when using the capital gains and loss provisions. Obviously, the timing of the taxpayer’s sale of capital assets bees crucial.
SHORT SALES AGAINST THE BOX-LONG IN BENEFITS
The sophisticated investor has been able to utilize the short-sale-against- the-box technique to control the tax timing of capital gains. Although the investor, at the time of the short sale, has fixed his overall economic gain, the taxable gain is not realized until the short sale is closed out; that is, the securities are delivered to the purchaser. Moreover, prior to August 1967 shorting against the box was also used to circumvent the wash-sale rules. Can this short sale technique be further extended to pletely eliminate capital gains on sales of securities? Here is how it would work.
Mr. Smith owns 100 shares of X Co. which are held by his broker. On September 1, 1973 he instructs his broker to sell these securities “short against the box.\ At this point Mr. Smith is credited with the proceeds of the sale, in a short account, while still maintaining his long position in X Co. Stock. Thus, there is no taxable event as yet. Normally Mr. Smith would then close out the short sale in January 1974, effectively postponing the recognition of capital gain from 1973 to 1974. This is the standard transaction. However, Mr. Smith has no intention of closing out the transaction during his lifetime sincere can obtain a substantial amount of cash immediately without incurring any tax. The results would be as follows:
1. DURING HIS LIFETIME.
No recognition of capital gain on the sale of 100 shares of X Co. Since the sale was not closed out.
2. MR.SMITH'S ESTATE.
The possibility of no recognition of capital gain. The tax basis of the 100 shares of the X Co., held in the long position, would take on a stepped-up estate tax value. If these securities are then used to close out the short sale, the stepped-up basis would This excerpt on short sales is reprinted by permission from Mr. Malaga's \Against the Box-Long in benefits,” Copyright 1969 by the American Institute of Certified Public Accountants, REDUCING AND AVOIDING INE TAXES
税务-减少和避免所得税的艺术文献翻译 精品
