The 50% exclusion percentage
was increased to 75% for stock acquired from Feb.
To calculate the tax due on the annuity's income stream, we must determine the annuity exclusion percentage
which is established when the contract is annuitized.
1202 exclusion percentage
will fall to 50%, and an alternative minimum tax (AMT) preference will further erode the exclusion's advantages.
* Shares acquired after August 10, 1993, but before February 18, 2009, have a 50% exclusion percentage
The third step is to divide the investment in the contract by the expected return under the contract, carrying the quotient to three decimal places to express the exclusion ratio as an "exclusion percentage
This is the exclusion ratio expressed as a percentage (exclusion percentage
The 40-percent exclusion percentage
is reduced by 2 percent for each percentage point by which the value of the qualified conservation is less than 30 percent of the value of the land.
Because only 25% of the property's value was conveyed, the 40% exclusion percentage
must be reduced by 2% for each 1% by which the value of the easement is below 30% of the entire property value.
Since only 25 percent of the value was conveyed, the 40 percent exclusion percentage
is reduced by 2 percent for each 1 percent that the easement is below 30 percent of the value of the entire property.
1202 favorable gain exclusion provision existed for regular income tax purposes, but at a lower exclusion percentage
(resulting in the unexcluded portion being subject to a 28% tax rate).
27, 2010, the exclusion percentage
is 75%, and for qualifying stock acquired after Sept.
1, 2011, the exclusion percentage
increased to 100%.