Port Wren Capital, LLC    

                   Finding Value InvestmentsSM

 SM

 

[Home] [Services] [Research] [Performance] [Digest] [Newsletter] [What's New] [About Us] [Prior Reports] [Resources] [Buffett Report] [FAQ] [Contact Us] [Policies]

The New 2018 Tax Law and Capital Gains                                       


A FEW TESTIMONIALS

"Just sold one position and made 20% in less than a year." Roger D.

"Your research is solid and I read all of your reports. Yes I would recommend your subscription service." Bill M.

"The research performed by Port Wren Capital has allowed me to invest into the stock market comfortably and profitably. The difference between most services and Port Wren Capital is that they are only providing research and not handling my money in the market." Josh B.

"I agree, Top Pick for 2016 and beyond." Leo B.   

"The drastic drop in oil must be forcing some firms to liquidate other positions, good positions, like being long BHI. Down here at $47.80 is a true gift. I'll be buying more if it remains this low." Tony M.

"THE best article on GILD in a long time!!!" Charles V.

View EXCLUSIVE RESEARCH by Port Wren Capital

Proven performance since conception

Detail analysis on value investments

Independent, proprietary research on promising undervalued stocks

STILL UNSURE? TAKE a FREE TEST DRIVE

Try our practical investment research for two full weeks, TOTALLY FREE with limited features. 

View over 30 actual Buy Research Reports, glimpse at some actual Update and Sell Research Reports as well.

View our service first hand, and then decide for yourself if it is right for you.

Invest before you ever pay a dime

It's complimentary, just sign up to get access.

FEATURED ON

Book a Meeting

 Tell a Friend

GET MARKET INSIGHT

First hand news on many aspects into the world of value investing in your E-Mail box each month.

With our value investing monthly circular newsletter, The Contrarian NewsletterSM

It's complimentary now for six months! Normally a $120.00 value for twelve months.

FOLLOW US

If you invest in individual stocks like we do at Port Wren Capital, LLC, then you need to have an understanding of the new tax law and the impact it has on your capital gains tax beginning in 2018 and beyond.

First, letís look at the capital gains tax before the recent 2018 law. There are two categorizes of capital gains. One is Short-Term capital gains and the other is Long-Term capital gains. Any gains on short-term is taxed at the Ordinary Income tax rate. Short-term is defined as holding the stock for less than one year. While stocks held for longer than one year are defined as long-term. Under the old law there were three tax brackets for long-term capital gains that included: 0%, 15% and 20%. Capital gains tax rates are more favorable compared to the rates for ordinary income which ranged from 10% up to 39.6%. Your long-term (LT) capital tax rate depends on your marginal tax rate or tax bracket. Once you know your marginal tax rate and your filing status, you can figure your long-term capital gains tax rate.

If Marginal is 10%, then LT Capital is 0%. If Marginal is 15%, then LT Capital is 0%. If Marginal is 25%, then LT Capital is 15%. If Marginal is 28%, then LT Capital is 15%. If Margin is 33%, then LT Capital is 15%. If Margin is 35%, then LT Capital is 15%. If Marginal is 39.6%, then LT Capital is 20%. Under the old law, the LT Capital gains tax rate applied to the two bottom marginal brackets, while the 15% LT Capital Gain rate applied to the next four brackets and the 20% LT Capital Gains rate applied to the top margin bracket.

Under the new tax law, the same three capital gains rates are the same. However, the three long-term (LT) capital gain rates donít align with the marginal tax brackets as before. Instead they are applied to maximum taxable income levels as indicted here.

If filing status is Married Filing Jointly (MFJ), and taxable income is Up to $77,200, then the LT Capital Gains Tax is 0%.

If filing status is Married Filing Jointly (MFJ), and taxable income is $77,200 to $479,000, then the LT Capital Gains tax is 15%.

If filing status is Married Filing Jointly (MFJ), and taxable income is Over $479,000, then the LT Capital Gains tax is 20%.

The taxable income ranges do vary from the above if your filing status is either Single or Married Filing Single (MFS). Although, the three long-term capital tax rates did not change and their alignment did. You can easily see the major tax advantage in investing in individual stocks compared to ordinary income like your W-2 wages. Why would you not want to invest in stocks long-term, and make money at a much lower tax rate? We can help you with your stock investments that can also reduce your tax liabilities.

At Port Wren Capital, LLC, we specialize in picking specific undervalued U.S. stocks using fundamental analysis developed by Benjamin Graham using a five step process. We have beaten the S&P500, DJIA and NASDAQ benchmarks since we started 5 years ago on our own investments. Discover the difference for yourself. To learn more contact us today.

Published: 5/1/18

 

GET EXCLUSIVE RESEARCH by Port Wren Capital

 

Back to Digest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Research ExpertsSM


Contact Information

E-Mail: Info@PortWrenCapital.com
Phone: 803-415-1935 
 

[Home] [Services] [Research] [Performance] [Digest] [Newsletter] [What's New] [About Us] [Prior Reports] [Resources] [Buffett Report] [FAQ] [Contact Us] [Policies]

 

Copyright © 2013-2019 Port Wren Capital, LLC. All rights reserved. Port Wren Capital LLC logo, PWC Stock Reports, Finding Value Investments, The Contrarian Newsletter, and Investment Research Experts are registered service marks of Port Wren Capital, LLC or its affiliates.