In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.Bonds are a long-term investment strategy, which are … [Read more...]
Tax Theory of Dividends
Putting together a dividend tax theory to match a buy-and-hold investment strategy is much complicated by shifting tax laws. Types If you have held a stock for 60 days, dividends paid from the profits of a domestic publicly traded company are "qualified" dividends and currently are taxed at a maximum 15 percent, which is lower than the marginal tax rate for most investors. … [Read more...]
What is 1098 E eligible?
If you’ve applied for a private student loan to pay for college tuition, you might be 1098-E eligible. Basically, this allows you to deduct student loan interest payments when you file your annual tax return. Once repayment on the loan begins, the bulk of monthly payments are applied toward the interest. Hence, it can take several years for the principle balance to … [Read more...]