Newspaper Page Text
FORSYTH COUNTY NEWS Sunday, April 18, 2004
PAGE 6A
Tax rates on dividends, capital gains drop this year
President George Bush
recently signed into law sig
nificant reductions in the taxes
paid on dividends and capital
gains. These are tremendous
incentives to help you save
and invest. Since these
changes may affect your
investment strategy, it’s
important that you understand
the tax cuts and meet with
your financial advisor to see
how you may benefit. The
information below provides
the basics.
Lower tax rates on divi
dends, capital gains
Starting this year and con
tinuing through 2008. the top
rate on dividends drops dra
matically. from 38.6 percent to
15 percent, while the top rate
on most capital gains drops
from 20 percent to 15 percent.
If you are in the 10-percent or
15-percent income-tax brack
ets. the tax rate on capital
gains or dividends drops to 5
percent until 2007 and to zero
in 2008.
The reductions in capital
gains taxes apply only to gains
occurring on or after May 6.
However, the dividend-tax
reductions are retroactive for
this tax year. Dividends
received from Jan. 1 on may
be eligible for tax savings.
To be eligible for the gains
tax cut, though, you must have
held on to the investment for
more than one year. If you
haven't, the gains are taxed at
the same rate as ordinarv
optimum performance machines
Serr/ng Forsyth ( ounty
for nine years JBkwwlwl
* TM
Make Hi
jjmiML KI EWBU RY
M ■ •• v£ 4ztZ/CT !
Lm": ' Thousands of us have made the
z . . z> decision to simplify and enjoy
lite a little more. It you are on
the verge of making a change,
Z • //ww
WB|| j] -' ■ 3 ca * t *f OM ' 4na^ie
, 77/ ■ wBI!, Hi MmIwMMB Amenities Include:
ZZt/zzz//. Zz/ZZ/z/.j ■■ t
B KUL __ ..., JPVHH
.
Z-7.ZzzZ'z-z-zzaJ J > BT.
zZz- S/WyVY-/
770.887.5005
Directions: From GA 400, take Exit #ls (Bald Ridge ■■■ oify
iSi Marina Road) Trave! west 2 miles as it becomes Highway ,’Y ,T,;',
*"® 20 West. Turn right at the light onto the Highway 306 Alvv*y» Thora For You
Connector/Sawnee Drive Newbury is on the right. 'ZJI * '"' 1
BUSINESS & INDUSTRY
STOCK MARKET UPDATE
market in brief stocks of local interest
At the close ot sign Stock Last Change
• April 16,2004 ATG AGL Resources 28.27 +0.03
BLS BellSouth Corp. 26.08 -0.14
DOW +54.51 DELL Dell Computer 35.32 +0.09
DAL Delta Air Lines 6.75 -0.23
F Ford Motor Company 13.34 +0.22
in°45?97 GP Georgia Pacific 36.45 +1.04
GM General Motors 46.17 +0.78
HD Home Depot 36.20 +0.34
INTC Intel Corp. 26.41 -0.27
KO Coca-Cola Company 51.93 +0.73
MCD McDonalds Corp. 27.46 +0.53
S&PSOO +5.77 p SR Microsoft 25.14 -0.08
PEP PepsiCo Inc. 54.79 -0.02
RF Regions Financial 34.96 +0.75
Volume: SFA Scientific Atlanta 31.56 -0.65
1,134.61 SGMS Scientific Games 19.68 +0.73
SO Southern Company 29.55 +0.25
||lgK| T AT&T 18.83 +0.19
TSN Tyson Foods 18.86 +0.36
UPS United Parcel Service 71.62 +0.29
WB Wachovia Corp. 44.75 +0.59
NASDAQ -6.43 WMT Wal-Mart Stores Inc. 58.44 +0.65
Volume: John M. Weaver
1.995.74 Senior Vice President, Investment Officer
2l cT'° n X S! Wachovia
(678)455-0016 SECURITIES
income. Presently, dividends
and interest are both taxed as
ordinary income. Note that the
top marginal rate falls from
Fibromyalgia?
If you suffer from reveals how to get relief
chronic fibromyalgia as fast as humanly pos
pain, a free report is sible without drugs,
available that reveals shots or surgery, call
what your doctor may toll-free 24-hour
not know. To get your recorded message at
free copy by mail that 1-888-895-7484.
38.6 percent to 35 percent this
year under the legislation to
the president signed.
Unless Congress acts, the
rates on dividends and gains
will revert in 2009 to where
they stood in 2002. That
means that dividends would
be taxed at the same rate as
income, while capital gains on
securities held for more than
one year would be subject to
the 20-percent levy.
What dividends are eligi
ble?
Shareholders will get the
tax break on corporate stock
dividends of most U.S. com
panies and most foreign com
panies if their stock trades in
the United States.
Note that earnings that you
may have though were divi
dends may in fact be interest
or another form of payment
that is not eligible for the low
ered tax rates. Here are some
examples to bear in mind:
• interest lnterest from
corporate and Treasury bonds,
certificates of deposit, money
market funds, and such will
continue to be taxed as ordi
nary income.
• Preferred stocks lf the
preferred stock is an equity,
the dividend qualifies for the
tax cut. However, if the pre
ferred stock is considered a
debt instrument for tax pur
poses. which many are, the
dividend is really interest and
will be taxed as ordinary
income. If you are unclear
about whether your preferred
holdings qualify, talk to your
BATHTUBS H CERAMIC TILE
Repair ~ Remodel ~ Reglaze
With the nation i oldest and largest reglazing company you can u ...
be assured of the highest quality workmanship and materials. UXI
VISIT our showroom or call for a free brochure. Rjt ■
REFINISHERS
(770)945-0072 800-332-0048
'TA, FAX (770)271-1614
www.unlqu4r4flnlßhert.com
‘»4~. TiT tvf ALSO SPE CUiiZtm SNTiOuf njtJSiw RES rofu
financial advisor.
• Real estate investment
trusts REITs must pass on
at least 90 percent of their
profits to shareholders. Thus
the profits are left mostly
untaxed at the corporate level.
As a result, most REIT divi
dends will be taxed as ordi
nary income. However, when
REIT shareholders sell their
shares, any profit realized will
be taxed at the new, lower
capital-gains rate, provided
that the shares are held for
more than one year.
• Municipal bonds
Interest from municipal bonds
will remain exempt from fed
eral taxes, and from state taxes
if issued by your home state.
If you sell your bond at a prof
it before maturity and have
held it for more than one year,
it will qualify for the lower
capital-gains rate.
How will I benefit?
The potential tax savings
are a significant reason for
you to review your portfolio
with your financial advisor in
light of your long-term goals,
your tolerance for risk, and
your tax liability. Some ques
tions to consider asking:
• Given the lower tax rate,
should I now realize gains that
have accumulated over the
past few years and then rein
vest those gains elsewhere?
• Should I change the bal
ance in my portfolio between
See BUSINESS, Page 7A