Posts Tagged REDUCE TAXES

Stock Loans

Hedge current portfolio positions and gain access to capital resources through loans
against free trading, aged affiliate or aged non-affiliate securities. Make proper use
of your assets while waiting for performance and hedge your position should the
asset move against you.

Whether you need to borrow cash for personal or business purposes, these loans
against stock can be funded in as few as five business days and are available to
insiders, affiliates and common shareholders of publicly traded companies on U.S.
exchanges, as well as other major foreign exchanges.

Big Board or Large Cap stockholders are usually elegible for high LTV\’s while Small
to Mid-Cap stockholders can receive respectable LTV\’s based on exchange, price
and liquidity. Furthermore, no expenses or upfront fees are charged for our loan
programs.

Stock Loan is a loan. It is not a sale. For most of our borrowers, a Stock Loan does
not trigger a capital gains tax event unless they default. And though the proceeds
cannot be put into any marginable securities, they are available for other types of
investments or purchases. Interest can accrue or be paid quarterly.

There are no margin calls. Enron stock investors with a Flagship Stock Loan would
have received 90% loan to value out of their investment – and been free to walk
away without a single margin or house call, even after the infamous fall in share
price.

Yes, literally, walk away. These are \”non-recourse\” stock loans, so that if you wish,
you may simply walk away and owe not a penny more to us as lender, with no
negative consequence to your credit, forfeiting only the presumably devalued stock
shares. Why? We\’ve written private hedges on every share. And though you may have
tax consequences in the event of default, you won\’t have to repay your loan to us.

In the market? Out? Why not both?
So you want your stock investments to stay stock investments. You love your stock
picks. And they aren\’t doing too badly, maybe have some great prospects next year
too. You rightly don\’t want to sell (maybe capital gains taxes are looming?); you
don\’t want to leave the market. But you need the cash. In… Out…Go…. Stay… What
to do?

Consider a Stock Loan for Your Stock Investment. Put a floor on your potential loss,
while keeping all of your potential gain. Stock Loan means you can do both. No
need to sell your shares if you\’d rather leave them in the market working for you…
You can tap their value today ? safely ? so you can have the cash you require.
You\’ll get 90% of the market value and no principle or interest payments, if you
choose to let interest accrue.

But… if the share price increases, that increase belongs entirely to you. The upside
(depending on the type of Stock Loan you choose) from the the stock portfolio is
thus yours. You stay in the market, and out, at the same time. The best of both
worlds!

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in
solving the cash flow challenges of Small/Medium Businesses, Government Vendors
and Individuals with innovative financial solutions by providing a network for
securing operating capital.

http://www.peacockcapital.com;
info@peacockcapital.com

Writen By : Afra AmirSanjari

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Reducing Taxes Through Dividend-Salary Mix Calculations

Should I take wages or dividends from my privately owned
corporation? What is the best way of taking money out
of my company? In other words, what will result in the
least amount of income taxes?

A Canadian accountant will perform a dividend-salary mix
calculation to determine the best way of withdrawing money
from the corporation.

Even though Canadian income tax laws are different from
other jurisdictions, some of the same principles of tax
planning will still apply.

In order to qualify for Canada Pension Plan (C.P.P.)
benefits or to make Registered Retirement Savings Plan
(R.R.S.P.) contributions, there must be some earned income.
This requires the payment of wages. In fact, many
accountants will make sure that their clients have maximized
their C.P.P. and R.R.S.P. contributions for the year in
order to ensure sufficient future retirement benefits, even
if it costs a little more in income tax and/or payroll taxes.

On the other hand, the Dividend Tax Credit reduces the tax
payable on dividends received from the corporation, since
the corporation has already been taxed on its income.
Therefore, the accountant may recommend that the corporation
pay some dividends.

Sometimes, if the owner doesn\’t require the cash, the income
is simply retained inside the corporation and tax is paid at
the lower small business rate by the corporation. If the
corporation had income in excess of the Small Business
Deduction, it likely would pay it out in wages.

Depending on the circumstances of the taxpayer, wages may be
the least expensive way of taking money out of the corporation.
Sometimes, dividends are better. Generally, a mix of both is
required.

An accountant will have to balance many factors to come out
with the optimal mix for you. He will consider your family
situation, other income sources, losses, investment and
retirement objectives, et cetera. Keep in mind that the lowest
possible tax bill for the current year is not always in your
best interests.

RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc.,
http://www.popeconsultinginc.com/ has been helping
clients to earn maximum business profits for over
twenty-five years.

For valuable Work at Home Small Business Ideas,
visit: http://www.yenommarketinginc.com/

For more information about income taxes, visit
http://www.yenommarketinginc.com/income-taxes.html

Writen By : J. Stephen Pope

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