About This Chapter
Tax Treatment of Investment Profiles - Chapter Summary
In this chapter on tax treatment of investment profiles, engaging lessons enable you to learn about taxes for C Corporations and how a variable annuity contract is taxed during the accumulation period. You can also gain a deeper understanding of the differences between qualified and non-qualified dividend distributions. After going through the lessons, you should be able to do the following with ease:
- Detail when mutual fund distributions are subject to capital gains tax
- Explain taxation at surrender of a variable annuity contract
- Discuss realized capital gains related to the conduit theory of taxation
- Recall the formula used to calculate capital losses
- Distinguish between short-term and long-term capital gains
- Outline tax treatment of dividend distributions
- Recount IRS rules and limits related to tax loss harvesting
- Describe how to calculate the holding period yield
Our instructors help you quickly absorb key information regarding tax treatment of investment profiles. You can study all the lessons or skip around to focus only on what you still need to grasp. There is a short quiz available for each lesson, which is a great way to make sure you understand and can remember important concepts. Want to study offline? Simply print the quizzes as study worksheets.
1. Tax Treatment of Mutual Funds: Description & Overview
Mutual funds are a popular investment vehicle either directly or through employer sponsored retirement accounts. For those investing outside qualified retirement plans, tax considerations are an important facet of the fund choice process.
2. Capital Gains Treatments: Definition & Advantages
Depending on the length of time that you've owned an asset, there are different capital gains taxes that come into effect. This lesson will help you ascertain the difference between short-term and long-term capital gains taxes.
3. How to Calculate Capital Gains: Definition, Formula & Example
The process of calculating capital gains is much the same for corporations and pass-through entities, but there are differences in the tax rates. Let's look at capital gains amounts and how taxes are set for a C Corporation.
4. How to Calculate Capital Losses: Definition, Formula & Example
Every once in a while, a business takes a financial loss when disposing of capital assets. Fortunately, these losses can be used to reduce tax bills. In this lesson, we will review how capital losses work for a corporation.
5. Qualified & Non-Qualified Dividend Distributions
When a company pays dividends, it's a good thing. But it can wreak havoc on people's taxes. This lesson will examine the differences in qualified and nonqualified dividends and the tax implications of each.
6. Tax Loss Harvesting: Rules & Examples
Tax-loss harvesting is an excellent method for reducing tax obligations, but this lesson explains how investors must also be aware of IRS rules and limits when considering this strategy.
7. Holding Period Yield: Formula & Examples
One of the simplest ways to calculate investment performance is by using the holding period yield formula. This lesson will explore the information needed to calculate holding period yield and provide several examples of how to make the calculation.
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Other chapters within the Series 6 Exam: Study Guide & Practice course
- Financial Advertising & Communications With the Public
- Describing Investment Products & Services
- Disclosing Financial Account Types & Restrictions
- Understanding Retirement Plans & Tax Advantaged Accounts
- Obtaining Basic Customer Information & Documentation
- Obtaining Customer Investment Profile Information
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Investment Portfolios & Financial Statements
- Types of Underlying Securities
- Understanding Funds, Trusts & Investment Companies
- Understanding Municipal Fund Securities
- Variable Life Insurance & Annuity Contracts
- Disclosing Investment Product Information
- Updating Investment Customers & Retaining Customer Records
- Processing & Confirming Financial Transactions
- Resolving Investment Disputes & Customer Complaints