Friday, December 28, 2012 7:14:59 PM
TooFuzzy, I certainly do not have "the dope" on US Taxation issues. No need to explain it. . .I have just figured out how it works here in Holland
It is easy for me too as I have a very low income and no assets. . .I usually get money back from taxation that was applied to my pension.
If one has us less that about € 23000 Savings then that is exempt from Capital Asset Tax, but if one has more the income on it is above the TaxationThreshold. . . about € 10000 or so. . .It works like this here:
Investment Equity is say, average for the year € 100. . .Cap. Gain is assumed to be 4% . . .That = € 4.00.
They do not look at the real yield. If you real yield was more that 4% then the average value if the investment would be higher than € 100, and would be say € 105 if the investment gain is 10%. . .(Then the investor pays 4% on the € 5.00 assumed investment gain).
The € 4 gain on the € 100 is income. . .that is taxed @ 37% (next year) on the lowest income bracket:
Total Tax = 4*(1+0.37) = € 5.48 on the € 100 Investment Value or total Tax Rate = 5.48 %
However if you have other type of Assets . . like a € 250,000 Second Home, the asset tax is 1,5% and with a high income then one pays 52% income tax on all income. This then makes the total tax per € 100 Investment and € 100 on Assets
€ 1,5*(1+0,52) = € 2.28 Asset Tax per € 100 Asset Value
plus
€ 4*(1+0,52) = € 6.08 Investment Tax per € 100 Investment Value.
Almost every year these rules are changed to balance The Budget but I think for the last 13 years they do not managed to do that.
The deficits get bigger every year!
It is easy for me too as I have a very low income and no assets. . .I usually get money back from taxation that was applied to my pension.
If one has us less that about € 23000 Savings then that is exempt from Capital Asset Tax, but if one has more the income on it is above the TaxationThreshold. . . about € 10000 or so. . .It works like this here:
Investment Equity is say, average for the year € 100. . .Cap. Gain is assumed to be 4% . . .That = € 4.00.
They do not look at the real yield. If you real yield was more that 4% then the average value if the investment would be higher than € 100, and would be say € 105 if the investment gain is 10%. . .(Then the investor pays 4% on the € 5.00 assumed investment gain).
The € 4 gain on the € 100 is income. . .that is taxed @ 37% (next year) on the lowest income bracket:
Total Tax = 4*(1+0.37) = € 5.48 on the € 100 Investment Value or total Tax Rate = 5.48 %
However if you have other type of Assets . . like a € 250,000 Second Home, the asset tax is 1,5% and with a high income then one pays 52% income tax on all income. This then makes the total tax per € 100 Investment and € 100 on Assets
€ 1,5*(1+0,52) = € 2.28 Asset Tax per € 100 Asset Value
plus
€ 4*(1+0,52) = € 6.08 Investment Tax per € 100 Investment Value.
Almost every year these rules are changed to balance The Budget but I think for the last 13 years they do not managed to do that.
The deficits get bigger every year!
Conrad Winkelman
What is Vortex AIMing? Look for my Vortex Discussion Forum:
http://investorshub.advfn.com/boards/board.asp?board_id=1341
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