Are there any tax free investments options to save on Federal taxes? Like I know one, Atlas energy will give upto 80% of Federal tax free investments. So, if you invest say 20,000, you can deduct $18,000 when you file the taxes. After one year you will get limited partnership in the company. 10Q- filed to SEC
Are there any other such vehicle that are good in long run and also provides the tax break for current year..
Let's discuss if you are investing in any such vehicle.
Are there any tax free investments options to save on Federal taxes? Like I know one, Atlas energy will give upto 80% of Federal tax free investments. So, if you invest say 20,000, you can deduct $18,000 when you file the taxes. After one year you will get limited partnership in the company.
Are there any other such vehicle that are good in long run and also provides the tax break for current year..
Let's discuss if you are investing in any such vehicle. Looking at the title, I thought you were looking for investment vehicles where the gains are tax-free (or at least have a preferential tax treatment). But I dont get this, how can you deduct part of your investment on your taxes as you claim?
Energy MLPs are only tax deferred. Distributions to partners are offset by depletion, etc. such that a majority of the distribution may be taken as cash or reinvested without seeing taxes taken out. Depletion, however, serves to reduce your cost basis such that you pay taxes all at once when selling. You gain a tax advantage but it is by no means "tax free".
Another note, read about the taxes you will pay on your gains. To my knowledge these investments held in tax advantaged accounts (Roth) are not exempt from gains taxes. If that's not the case then I apologize and think it's really cool.
donthurtme said: Energy MLPs are only tax deferred. Distributions to partners are offset by depletion, etc. such that a majority of the distribution may be taken as cash or reinvested without seeing taxes taken out. Depletion, however, serves to reduce your cost basis such that you pay taxes all at once when selling. You gain a tax advantage but it is by no means "tax free".
Another note, read about the taxes you will pay on your gains. To my knowledge these investments held in tax advantaged accounts (Roth) are not exempt from gains taxes. If that's not the case then I apologize and think it's really cool.For retirement accounts, you pay tax UBTI. In some cases, a k-1 from an investment can generate enough ubti in a given year to cause your Ira to owe taxes.
xerty
Senior Member - 2K
posted: Nov. 15, 2009 @ 1:03p
theman2 said: For retirement accounts, you pay tax UBTI. In some cases, a k-1 from an investment can generate enough ubti in a given year to cause your Ira to owe taxes. First $1K in UBTI is tax free. This is essentially your IRA's "standard deduction" for that type of unrelated income. Earn more than $1K of UBTI in a year and your IRA will owe taxes and have to file its own tax return (separate from yours), and will pay taxes on the amount more than $1K that it earned that way.
dgrabber said: Atlas energy will give upto 80% of Federal tax free investments. So, if you invest say 20,000, you can deduct $18,000 when you file the taxes.
How exactly do you deduct $16,000? I thought you can only deduct the interest earned on a tax-free investment?
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