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Capital Gains assumption

Submitted by micheleguy@sbcg... on 22 August 2006 - 6:24pm

On the tax assumptions tab, is "unrealized gains/losses on existing financial assets" for regular assets or regular assets plus retirement assets?

I am using ESPlanner Plus 2.8.1 R1

Thanks.

‹ Standard of living / consumtion adjustment
Submitted by Dick Munroe on 22 August 2006 - 7:33pm.
1

It's pretty much what it says. If as of "now" you have unrealized gains or losses that will be taxed (not deferred as will retirement accounts) "now" enter it here and ESPlanner will do the right things to handle the tax situation. Capital gains on regular assets and other assets are handled seperately as are special receipts taxable as capital gains. Basically this is to accommodate those folks who may have made a sale this year but who have not yet paid taxes on it.

Best,

Dick Munroe

Submitted by micheleguy@sbcg... on 23 August 2006 - 12:22pm.
2

Thanks for the response.

But the screen (or documentation) does not say "now" - it says "unrealized gains/losses on existing financial assets" - thus I assume the gains are "unrealized" and will be taken at some future point.

Am I missing something?

Submitted by Dick Munroe on 31 August 2006 - 6:07pm.
3

Well, the wording is a little unclear, but it means "now". For example, say you sold stock at a loss two years ago, with no way to use the loss. You're limited to a 3K/year deduction and outstanding balance on this loss would be an "unrealized" loss. ESPlanner will do what it can to best use losses. Similarly with gains.

Best,

Dick Munroe

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