Tax expenditures include the inventory of Tax-Exempt Income, Adjustments to Income, Itemized Deductions, and Tax Credits (refundable and nonrefundable).
Included in the positive adjustment to stock basis is an increase for tax-exempt income realized by the S corporation.
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For example, a taxpayer subject to a top statutory rate of 39.6% would pay an 11.6% tax on tax-exempt income.
Under the Bush dividend plan, however, corporations can pass along tax-exempt income to investors only to the extent that they have paid corporate income tax.
The clear-headed among us see this phenomenon as a rare opportunity to pick up some attractive tax-exempt income from well-researched munis especially if you are willing to hold the bonds until their maturities.
Hold them in your tax-exempt accounts (like IRAs) and the state tax problem--the fact that only Treasury interest is exempt from state income tax--ceases to be a problem.
This is income from almost all sources (including tax-exempt bonds, for example), reduced by income taxes and by an allowance for subsistence-level living.
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To preserve the tax-exempt nature of the income.
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The "base" calculation includes one-half your Social Security, plus almost all your other income, including tax-exempt bond interest but not Roth withdrawals.
Unlike corporate bonds or U.S. Treasuries, muni bond interest is often federal tax-free and exempt from state income tax of the state they are issued.
The same process of creating 1099 income creates good income for tax-exempt entities, which means it goes into 401(k)s, IRAs, as well as foundations, endowments, ERISA plans.
While the write-off would make no difference to a tax-exempt investor, a taxable investor in the 30% tax bracket would get an after-tax income stream comparable to another REIT yielding 7.14%, a substantial difference.
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President Barack Obama has proposed limiting or ending the tax-exempt interest on municipal bonds for upper income Americans.
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Alpha among active Fixed Income Managers (taxable and tax-exempt) has been improving over the past five years.
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The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and moderate-income workers.
The Bush Administration's proposed new savings accounts are a step--a remarkably bold one--toward a radical tax change in the U.S. This revolution is moving toward what I and others have long advocated: a flat tax--an income tax system with a single rate that would apply after a high threshold and that would exempt levies on capital gains, dividends and interest.
Since employer-paid health insurance is exempt from income tax, there's an incentive for these plans to cover things like sunglasses and marital counseling.
Traditional tax-exempt bonds, by contrast, are more valuable for high-income investors because they reap a larger tax advantage.
Most of his income is from a disability policy and is tax-exempt because he paid for the policy out of his own pocket.
Such companies have been exempt from corporate income tax since 2008, when the Zero-10 tax regime was introduced.
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For income tax purposes, the IRS considers these organizations tax-exempt.
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Interest from tax-exempt bonds will remain free of federal taxes and the Medicare tax on unearned income.
He said that curbs in credits and deductions would exempt middle-income households who would continue to receive the benefits of tax breaks such as the deductions for mortgage interest and charitable contributions.
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Asked if giving generous per-child credits will result in an even larger number of households exempt from the income tax and therefore amenable to more spending, he says his plan will drive growth and that, in turn, will bring more people on to the tax rolls.
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The USAA Texas Tax-Free Income Fund looks utterly pointless, given that Texas lacks an income tax from which to be exempt.
Tax-exempt interest from munis issued to fund private activities, such as sports arenas, must be included in income when calculating the alternative minimum tax.
The interest on municipal bonds is exempt from income tax on the federal and sometimes state levels, giving them a higher after-tax yield than a corporate or Treasury with the same coupon and maturity.
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For years, most small tax-exempt organizations were exempt from filing requirements with IRS. This all changed a few years back when The Pension Protection Act of 2006 made it mandatory for tax-exempt organizations to file an annual information return or notice with the IRS regardless of how much (or little) income the organization receives.
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