Capital Markets Tax

When taking advantage of key investment opportunities on capital markets, you will need to be well aware of the implications of each transaction—including the way they affect your tax liability. All varieties of public and private securities have their own nuances, and they can obviously result in changes to your tax obligations in very subtle ways.

Hart David Carson, can help you account for the tax implications, regulatory risks, and economic nuances of trading in capital markets in order to keep your financial liabilities to a minimum. We advise our clients on all varieties of capital market products, including:

• Private equity funds
• Hedge funds
• Common stocks
• Preferred stocks
• Debentures
• Mortgage bonds
• Bank assets

Factoring the tax implications of each of these types of securities into your overall tax strategy will require planning and in-depth knowledge of the regulations and requirements in place on capital market trading. In addition, we assist financial and corporate clients with securities offerings of all varieties, including bond and note issuance, debt offerings, exchange offers, and other offerings.

Every time you engage in a capital market transaction, you face the possibility of capital gains taxes. In addition to taxes on interest and other forms of income, these can bloat to a massive burden when it comes time to file your taxes for the year. Keeping these costs to a minimum requires a sound understanding of how capital markets work in the eyes of United States and Illinois tax laws.

These obligations can be kept down to a manageable amount in several ways, including:

• Effective use of tax-deferred programs such as retirement accounts and pension plans
• Tracking wash sales
• Establishing trading activities as a business, including wise corporate structuring
• Matching gains and losses
• Reinvesting dividends
• Utilizing buy-and-hold strategies

Anticipating transactions can help you keep ahead of the shifts in tax burdens you’ll have to face and keep those down as much as possible. The tax attorneys at Hart David Carson, can help you manage this process and assess how much you owe, provide counsel on keeping tax obligations down, and assist you in keeping in full compliance with federal and state tax requirements.

Keeping up with the implications of your own activities is vital to effective capital markets tax planning. However, you also need to make sure you are in compliance with changes in tax laws, each of which adds another layer of complexity to an already intricate tax code. Legal assistance is key when it comes to making sure your activities are adequately categorized and reported.

Hart David Carson, provides advisory services when it comes to incorporating equity funds, derivatives, bonds, and other financial instruments into your tax planning. We can help you structure your funds and manage your activities in such a way that it keeps your tax obligations to an absolute minimum, all while assisting you with the assessment of how much you owe from year to year. To learn more about our capital markets tax services, contact us today.