posted
A quick note to remind you to factor in this new tax on stock purchases effective on today's date. Be sure to consider this new tax to determine needed net profits.
As you know an attachment to a bill has slipped quietly through both the Congress and the House, and was signed into law by President Bush several months back.
This new tax applies only to stock purchases and does not apply to stock sales. You will need to factor in this new one point five (1.5) percent federal excise tax on all purchases of stocks, effective on today's date.
This new excise tax is based on the total purchase value of stocks, but does not include commission fees or other normal transaction fees.
Contact your broker to determine your pay schedule for this new tax. My understanding pay schedules for cash accounts and for margin accounts, are different. There might be some benefits, delays in having to pay, depending on your broker's policy.
E*trade, in their "portfolio position" report for customers, will include your commission fees making it easier to see "where" you are in profits. I have not checked E*trade yet to determine how this new federal tax, effective today, will be reported in portfolio positions.
Obviously this new tax will not show in reports until a customer makes a purchase on today's date or subsequent dates.
Readers really need to call or write their brokers and ask about this new federal tax. No doubt each broker will have specific rules and reporting policies, of their own.
posted
does anyone happen to have a link to more information about this new tax? first i've heard of it, and i couldn't find anything with a quick google search.
posted
Don't go getting all uppity, Glassboy. I may decide to pull one over on you!
My hopes are twenty-thousand Market Makers and brokers are in a rush to check this new federal tax rule.
Could have pulled a scam on Wall Street by sending out several thousand well worded and official looking emails advising them to start charging this new tax for all customer accounts.
Oh, the temptation to do something like that.
Watch it, Wall Street. You are right at top on my hit list.
posted
I was confident that there would have been some very loud sqwawking on my news feeds if the 1.% sales tax was true--- i enjoy a pleasant april fool--- but the tax structure around the dividend issue IS unfriendly to day-trades--they can't daytrade and get the new tax break on the dividend bearing issues---not a joke---
while i was living in the VA Beach area a couple of shock jocks planted a "news" story on the air about the local trash dump(converted into a park called Mt Trashmore--NO JOKE) building up high methane gas levels and calling for evacuation--they paid some hefty fines for that one.......
messing with peoples money would be in bad taste-- Purl showed some good taste on it you must admit.....BRAVO
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