Broker Check

                                                                                                     August 31, 2003



            to the future senior partner for passing all four parts of the CPA Examination on the first try.  I am busting my buttons in pride!!


Email Newsletters

            If  you  do  not  want  to  receive these newsletter emails, do not block them.  Email us to remove you from the newsletter mailing list.  If you follow this request we will still be able to contact you as to financial matters which specifically affect you.


Not All Capital Gains Are Equal


Paperwork this year on capital gains due to the new law will be a nightmare:

·        Long term gains on sales made through May 5, 2003 will be taxed at up to 20%

·        Long term gains on sales made after May 5, 2003 will be taxed at up to 15%

·        Gains for singles with incomes over $112,500 (couples with over $150,000) are subject to AMT and therefore, their effective tax rate is 21.5%, not 15%

·        Installment sales made before May 5, 2003 are eligible for the lower rate on any installments received after May 5, 2003

·        Gains on a child’s sale, if the child is at least age 14, will be taxed at 5%. (No holding period applies so you can buy the stock, then gift it to the child, who then sells it!)

·        Gains on collectibles such as art, antiques, gems, stamps, coins, etc. will be the maximum 28% rate

·        Depreciation recapture on real estate is still taxed at up to 25%

·        Short term gains from assets that were owned for less than one year continue to be taxed as ordinary income at rates as high as 35%

·        Gains on small business stock held over five years are taxed up to 14%

·        Gains on assets owned more than five years by low income filers are taxed up to 8%, if sales were before May 6, 2003 Kiplinger Tax Letter 6/6/03


NYS Unemployment Insurance Rises

            Due to recent economic conditions, New York, as well as many other states, has had to borrow money from the Federal government in order to meet unemployment insurance benefit obligations.  Accordingly, New York now owes interest to the Federal government on the funds that were borrowed to pay the benefits.

            Therefore, New York is levying a surcharge of .06% to taxable wages paid in period October 1, 2001 to September 30, 2002, as of the computation date of December 31, 2002.

            Employers will be receiving the assessments presently.

            If you have any questions, please call 1-888-899-8810, the New York State Department of Labor.

Telecommuter Denied Unemployment Benefits 

            A telecommuter who worked from Florida for an office in Long Island is ineligible for New York Unemployment insurance according to the New York Court of Appeals.  In a unanimous decision, the court ruled that eligibility for benefits depends on where the worker is, not where the employer is. Asbury Park Press 7/3/03 p.F1


The Stock Market Appears to be Rising*

            on bigger than expected rise in factory orders.  According to the chief economist of a major bank, investors are beginning to believe the recovery story and want to be invested to profit from it. Asbury Park Press 7/3/03 p.F1


Mutual Fund Holders & The New Tax Law

            Depending on its underlying portfolio, a mutual fund’s dividends may be derived from income earned through numerous investments, including: stocks, bonds, Real Estate Investment Trusts (REITs) and money market instruments.  Generally, mutual fund income derived from qualified corporate dividends, paid to the fund after December 31, 2002 and held by the fund for the appropriate holding period, will be eligible for the new 15% tax rate.  All other fund income will be paid out as non-qualified dividends and taxed at ordinary income rates. American Funds Advisor Bulletin 6/03


            If you have any questions about the foregoing or any other financial matters, please call us.  

            Remember, We’re Here For You!!


* Of course, please remember that securities are subject to market volatility/risk and past performance should not be considered indicative of future results.