Aces High Bulletin Board

General Forums => The O' Club => Topic started by: Udie on May 16, 2003, 01:13:21 PM

Title: OK all you fart smellers....
Post by: Udie on May 16, 2003, 01:13:21 PM: er... I mean smart fellers :D

Please explain the diference in a dividend tax and capital gains tax.....
Title: OK all you fart smellers....
Post by: Nifty on May 16, 2003, 01:14:49 PM: I just ripped a real nice one. It's not often I'm extremely proud of a fart...

oh wait, I didn't actually read your post, just the thread title! sorry!

I ain't got no clue what that thar difference is...
Title: OK all you fart smellers....
Post by: ra on May 16, 2003, 01:17:31 PM: Dividends are paid, usually quarterly, to stockholders by the corporation. Capital gains are one-time profits from the sale of property.
Title: OK all you fart smellers....
Post by: Udie on May 16, 2003, 01:20:44 PM: Quote
Originally posted by ra
Dividends are paid, usually quarterly, to stockholders by the corporation. Capital gains are one-time profits from the sale of property.

OK that's what I thought. So if the company that I own stocks in makes money they pay dividends. If I sell stock for a profit that's capital gains, right?

Too bad the senate didn't cut the cap gains either :(
Title: OK all you fart smellers....
Post by: john9001 on May 16, 2003, 01:25:20 PM: they are taxed at different rates.

when a company makes a profit and pays the stockholders some of it , thats a dividend ( to the stockholder).

if a stock goes up or down in price to more/less than you paid for it, the difference betwen what you paid and what you sell it for is a capital gain or loss.
Title: OK all you fart smellers....
Post by: ra on May 16, 2003, 01:27:46 PM: Quote
OK that's what I thought. So if the company that I own stocks in makes money they pay dividends. If I sell stock for a profit that's capital gains, right?

Yes, but a corporation does not have to pay dividends on a profit if they don't want to.

ra
Title: Re: OK all you fart smellers....
Post by: Arfann on May 16, 2003, 01:34:05 PM: Quote
Originally posted by Udie
er... I mean smart fellers :D

Please explain the diference in a dividend tax and capital gains tax.....

It's simple poli/legal talk for "screw the little guy, let's give ourselves a tax break".
Title: OK all you fart smellers....
Post by: Curval on May 16, 2003, 02:00:28 PM: Udie,

A dividend is "declared" by the Board of Directors of a company. It is paid to the shareholders, or members, of that company in the proportion to the holdings they have. Alternatively, certain funds pay dividends from their profits. These retain the characteristics of an ordinary dividend due to the fact that all the investors in the fund are essentially stakeholders of that fund and therefore the income is taxed differently from say, interest income. There are certain tax credits that you can get from certain types of dividends. Can't remember what the rules are, I'd have to look it up. I don't do tax returns anymore.

There is not usually a requirement to pay dividends, unless there is a legal obligation to do so.

Capital gains are derived from the sale of assets, be it real property or stock (shares) of a company.

The interesting thing about capital gains is that they can be off-set by capital losses.
Title: OK all you fart smellers....
Post by: Steve on May 16, 2003, 02:02:03 PM: Curval, I was getting ready to reply... no need... well said, Sir!
Title: OK all you fart smellers....
Post by: midnight Target on May 16, 2003, 02:49:57 PM: Accounting is all voodoo.
Title: OK all you fart smellers....
Post by: SirLoin on May 16, 2003, 04:42:30 PM: I never heard of a tax that didn't smell like a fert.