When it Comes to Taxes
tax treatment of investment income varies, and not just based
on whether the income is in the form of dividends or interest.
dividends are taxed at the favorable long-term capital gains
tax rate (generally 15% or 20%)
rather than at the applicable ordinary-income tax rate (which
might be as high as 39.6%).
Interest income generally is
taxed at ordinary-income rates. So stocks that pay qualified
dividends may be more attractive tax-wise than other income
investments, such as CDs and taxable bonds.
But there are exceptions.
For example, some dividends aren't qualified and therefore are
subject to ordinary-income rates, such as certain dividends
- Real estate investment trusts (REITs),
- Regulated investment companies (RICs),
- Money market mutual funds, and
- Certain foreign investments.
Also, the tax treatment of bond income varies. For example:
- Interest on U.S. government bonds is taxable on federal
returns but exempt on state and local returns.
- Interest on state and local
government bonds is excludable on federal returns. If the
bonds were issued in your home state, interest also might be
excludable on your state return.
- Corporate bond interest is
fully taxable for federal and state purposes.
While tax treatment shouldn't drive investment decisions, it's
one factor to consider — especially when it comes to income
investments. For help factoring taxes into your investment
strategy, contact us at 925-634-2344.
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,