Private Foundation Tax - Understanding Excise Tax in a 990-PF Return: How It Applies to Investment Income
Private foundations operate under unique tax rules, particularly when it comes to excise tax on investment income. If you’re a tax professional assisting foundations with their Form 990-PF, understanding how excise tax applies to capital gains, interest income, and dividend income is crucial. In this post, we’ll break down the key points you need to know.
Understanding the Qualified Dividends and Capital Gains Tax Worksheet
Understanding the Qualified Dividends and Capital Gains Tax Worksheet on a 1040 Tax Return
When preparing a tax return, many taxpayers are often unaware that different types of income are taxed at different rates. Among these are qualified dividends and capital gains, which benefit from preferential tax treatment under the U.S. tax code. The Qualified Dividends and Capital Gains Tax Worksheet, used with Form 1040, is a critical tool that ensures these types of income are taxed correctly—often at rates lower than ordinary income.
