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PDtax
PDtax, CPA firm owner
Category: Tax
Satisfied Customers: 1891
Experience:  32 years tax experience, including four years at a Big 4 firm.
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for accountant Im very new to investing. I already have a

Resolved Question:

for accountant
I'm very new to investing. I already have a 401k with my employer. Can I also set up a roth IRA for my long-term investments, and keep another account for dividends
? how much will i be taxed for any dividends cashed or automatically reinvested? Should I set up a separate tax savings account to pay additional taxes for my dividends. Currently my husband and I file jointly and I believe we are in the 25% tax bracket.
Do you have any suggestions within the law to save on taxes?
I would also like to start buying stocks for my 2 year old. Will I be taxed for that?
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

PDtax :

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PDtax :

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Expert:  PDtax replied 1 year ago.
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Customer: replied 1 year ago.

Good morning,


 


thanks for your fast reply. How do i join Q& A format? (assuming that there is one?

Expert:  PDtax replied 1 year ago.
I'm very new to investing. I already have a 401k with my employer. Can I also set up a roth IRA for my long-term investments, and keep another account for dividends?

Yes you can.


how much will i be taxed for any dividends cashed or automatically reinvested? Ordinary dividends will be taxed at the same rate as your wages or most other income. Capital gain dividends (available in mutual funds) are taxed at lower capital gains rates.

Should I set up a separate tax savings account to pay additional taxes for my dividends. Not necessary. Pay the taxes through your withholdings at work.

Currently my husband and I file jointly and I believe we are in the 25% tax bracket. Do you have any suggestions within the law to save on taxes? If you are in the market, consider buying a home. The interest and property taxes allow for some tax benefits once you can itemize.

I also like setting up a small business you can operate from home. You can convert some of your living costs to tax deductions, and use tax losses to offset other income.

I would also like to start buying stocks for my 2 year old. Will I be taxed for that? There isn't much of a tax on the little one's investment income until it exceeds $1,900. Once you get to that level, it is taxed like it was your income, and taxed at your rates.

Hope this covers your questions. Thanks from Just Answer.

PDtax
Customer: replied 1 year ago.

thank you. can i invest on behalf of a company maybe a single member llc? and how would this change the scenario? Would i save more money on taxes that way?

Expert:  PDtax replied 1 year ago.
the single member LLC doesn't save any tax dollars as an investment vehicle. The income gets reported to you personally anyway.

PDtax, CPA firm owner
Category: Tax
Satisfied Customers: 1891
Experience: 32 years tax experience, including four years at a Big 4 firm.
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