But let’s say for whatever reason you’re forced to realise a capital gain (or more likely gains, plural) big enough to take you over your CGT allowance for the year. One simple emergency response is to consider offsetting your capital gains with capital losses where possible, to reduce t...
Large gains in real capital, invested in modern production facilities, are required to produce large gains in economic well-being. Great labor availability, great consumer wants, and great government promises will lead to nothing but great frustration without continuous creation and employment of expens...
Subtract the basis from the sale price to find your capital gain or loss on the transaction. If you sold the asset for less than the basis, you will have a capital loss for the year. You can use your capital losses from investments to reduce your gains from investments andup to $3,00...
Having timelines for short-, mid- and long-term goals can help you track your progress and shift priorities as needed. Scheduling regular check-ins can help you see where you stand and help you figure out next steps. Financial goals in a nutshell ...
How to measure ROI with real estate Robert’s rich dad taught him that there are two things you need to know before diving into real estate — two sides of a coin that are essential for moving forward on any deal: How to figure cash-on-cash return for a real estate deal (And now ...
In the previous example, the IT Corporation needs computers to operate. Assuming 10 computers were bought for $2,000 each, the total Capital Expenditure was $20K. Furthermore, they won’t last forever. Assuming a useful life of five years we have to figure out: What is the depreciation an...
It is amazing how important it is for the economy to be in a steady state, and we’re not there yet; 2024 looks to be a very challenging year to figure all this out. But we are back to the old rules: don’t fight the Fed [US Federal Reser...
As the SOFR rises by 0.75% per year, ABC’s total interest payments to its bondholders over the five-year period (and paid by XYZ) amount to $265,000. But thanks to the swap, that figure is offset by a $15,000 gain. Let’s break down the calculation: LIBOR + 1.30%Variable Inter...
Long-term gains or losses are realized any time you sell a stock that you've held for more than a year. In order to figure out the gain or loss, you need your purchase and sale price for the stock. Subtract the purchase price from the sale price. A positive result means you have a...
Annualizing returns converts your multi-period returns intoa standardized yearly figure. But it doesn’t just prorate your returns over 12 months. Instead, you’re calculating what your return would be if the investment continued to perform the same over an entire year, accounting for the e...