RayAme's Discussion of Taxes & Insurance for New Immigrant
#16
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
No. Money you transfer is not taxed. You get taxed on income, be it earned income or unearned income. A capital gain is unearned income.
Regards, JEff
Regards, JEff
#17
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
Income is typically on-going, and as you pointed out may be earned (wages, salary, or trading profits), or unearned (from investments)
#18
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
A capital gain is a type of unearned income, from an investment. Typically a one-off if from a real estate transaction, but could well be recurring, and recurring regularly, if from other types of investments.
Regards, JEff
Regards, JEff
No, a capital gain is a capital gain, covered by the tax rules and rates for capital gains, in nature it is typically a one-off or transactional matter. Referring to it as "income" will serve only to confuse.
Income is typically on-going, and as you pointed out may be earned (wages, salary, or trading profits), or unearned (from investments)
Income is typically on-going, and as you pointed out may be earned (wages, salary, or trading profits), or unearned (from investments)
#19
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
This thread is a continuation of RayAme's thread in the Marriage-Based Forum here: http://britishexpats.com/forum/showthread.php?t=798080
That thread is for his visa questions. This thread is for his taxes and insurance questions.
Rene
Moderator
That thread is for his visa questions. This thread is for his taxes and insurance questions.
Rene
Moderator
#20
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
There is a whole separate section for capital gains in the tax codes of both the US and UK, and in neither country does it serve any useful purpose to call a capital gain "income".
Last edited by Pulaski; May 28th 2013 at 5:22 pm.
#21
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
I don't know about the UK, but how does one report their capital gains in the USA? Ah, there it is, in the Income section of Form 1040, along with wages, interest, dividends, pensions and annuities, etc.
Regards, JEff
Regards, JEff
#22
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
I apologize, yes, the US does charge "income tax" on capital gains, however conceptually capital gains are quite distinct from income.
#23
Lost in BE Cyberspace
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Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
So in my opinion, capital gains is a form of unearned income that is charged at a different rate than other unearned income (other than qualified dividends).
Last edited by Michael; May 28th 2013 at 5:35 pm.
#24
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
Agreed. Capital gains may be taxed differently from other forms of income, but it is nevertheless a type of unearned income. When realized it puts money in your pocket that you didn't have before.
The tax code has all sorts of twists and turn in it, to promote various agendas.
Regards, JEff
The tax code has all sorts of twists and turn in it, to promote various agendas.
Regards, JEff
#25
Lost in BE Cyberspace
Thread Starter
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Re: RayAme's Immigrant Visa questions...(Moved to to the Marriage Based Visas forum)
First I realized that all my capital gains and qualified dividends were taxed at 0% and then I realized that only about 15% of my social security benefits were taxable. What took me a long time to figure out was what would happen if I had more capital gains and determined that the additional gains would still be taxed at 0% but each dollar of additional capital gains or qualified dividends would add one additional dollar of social security benefits that would be taxed. As far as the distribution of IRA funds, that would be taxed and for every dollar distributed, one additional dollar of social security would also be taxed which would effectively double my marginal tax bracket.