Tax News
Like it or not, taxes are a big part of our lives, so it pays to keep up with the latest tax news. You can find that tax news here.
Stock Splits Are Not Taxed |
| The receipt of stock under a stock split is not taxable. Stock splits resemble the receipt of stock dividends, but they are not dividends. They do not represent a distribution of surplus as in the case of stock dividends. Although you own more shares, your ownership percentage has not changed. The purpose of a stock split is generally to reduce the price of individual shares in order to increase their marketability. The basis of the old holding is divided among all the shares in order to find the basis for the new shares. |
Dividends on Life Insurance Policies |
| Dividends on a life insurance policy (other than a modified endowment contract) are actually a refund of your premiums and are not taxed until they exceed the total premiums paid. |
When An Innocent Spouse Seeks Tax Relief By Robert W. Wood |
| The IRS sets a high bar for spouses angling to divorce themselves from their partners' back tax bills. |
Dividends Eligible for Reduced 2009 Rates |
| In Box 1b of Form 1099-DIV for 2009, payers of dividends will report the amount eligible for the zero rate (if the 10% or 15% bracket would otherwise apply) or 15% rate (if the rate would otherwise be 25% or higher). You must enter the qualified dividends on the qualified Dividends and Capital Gain Tax Worksheet in the IRS instructions for Form 1040 or Form 1040A to obtain the benefit of the preferential rate, unless you need the schedule D Tax Worksheet to report other transactions+D76. |
Lawyer Claims Oliver Wang Is Victim Of IRS's Offshore 'Zeal' By William P. Barrett |
| But furniture boss' attorney confirms Wang reported just $150,000 in salary from the business. |