Latest news with #GROWTH
CNBC
23-05-2025
- Business
- CNBC
Mutual funds can trigger hefty yearly capital gains taxes. Some lawmakers want to change that
If you own mutual funds, year-end payouts can trigger a surprise tax bill — even when you haven't sold the underlying investment. But some lawmakers want to change that. Sen. John Cornyn, R-Texas, this week introduced a bill, known as the Generate Retirement Ownership Through Long-Term Holding, or GROWTH, Act. If enacted, the bill would defer reinvested mutual fund capital gains taxes until investors sell their shares. Bipartisan House lawmakers introduced a similar bill in March. When you own mutual funds in a pre-tax 401(k) or individual retirement account, growth is tax-deferred. But if you hold assets in a brokerage account, capital gains distributions and dividends incur yearly taxes. More from Personal Finance:What the House GOP budget bill means for your moneyTax bill includes $1,000 baby bonus in 'Trump Accounts' House GOP tax bill passes 'SALT' deduction cap of $40,000 Depending on performance, some mutual funds can spit off substantial gains during the fourth quarter. In 2024, some paid double-digit distributions, Morningstar estimated. These payouts are subject to long-term capital gains taxes of 0%, 15% or 20%, depending on your taxable income. Some higher earners also pay an extra 3.8% surcharge on investment earnings. About $7 trillion of long-term mutual fund assets held outside of retirement accounts could be impacted by the legislation, according to the Investment Company Institute, which represents the asset management industry. In a statement Wednesday, Cornyn described the mutual fund proposal as a "no-brainer" that would "help provide parity with other investment options." If enacted, the proposal would "incentivize Americans to save and invest for their long-term goals" without the stress of an "unexpected tax bill," Eric Pan, president and CEO of the Investment Company Institute, said in a statement following the bill's introduction. However, it's unclear whether the bill will advance amid competing priorities. Lawmakers are wrestling over President Donald Trump's multi-trillion-dollar tax and spending package, which passed in the House on Thursday, and could face hurdles in the Senate. The U.S. Department of the Treasury has also asked Congress to raise the debt ceiling before August to avert a government shutdown. While deferring yearly taxes could benefit some investors, you could also make portfolio changes, financial experts say. You can avoid mutual fund payouts by switching to similar exchange-traded funds, or ETFs, which typically disburse less income, Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida, previously told CNBC. Of course, the trade could also trigger taxes if the mutual fund has embedded gains, which may require some planning, he said. Alternatively, investors could opt to keep mutual funds in tax-deferred accounts, such as pre-tax 401(k)s or IRAs.
Yahoo
09-02-2025
- Business
- Yahoo
Learn about Northside Lofts at community meeting in Aledo
Economic Growth Corporation (GROWTH) invites the community to learn about updates on the Northside Lofts at a free community meeting on Thursday, Feb. 13, from 5:30-6:30 p.m. at the VFW at 106 SW 3rd Ave., Aledo, according to a news release. GROWTH is the non-profit developer seeking to redevelop the former Aledo High School/Junior High School at 205 N. College Ave., Aledo. Community members are encouraged to actively participate in the meeting. The agenda will include updates on community revitalization efforts, an overview of the project, and an open forum on community needs assessment. Attendees will also have the opportunity to discuss and provide input and contribute to a design charrette aimed at shaping the vision of the development. This session offers a platform for community members to share their ideas, concerns, and feedback, helping to ensure that the project aligns with the needs and aspirations of the local community. Your involvement is vital to the success of this initiative. Northside Lofts is a workforce housing initiative designed to support the City's Community Revitalization Strategy. The redevelopment will provide 30 modern, energy-efficient apartments for individuals and families who wish to live near local businesses, services, and growing community amenities. Built in 1922, the property has remained vacant since 2003. GROWTH's vision for Northside Lofts involves transforming the historic three-story building into modern rental housing while preserving its architectural and historical elements. A new construction wing will be added. The development will feature 30 units, including studios, one-bedroom, and two-bedroom apartments, incorporating green building practices to enhance sustainability and long-term affordability for residents. The units will feature Energy Star appliances, ceiling fans and have advanced green building certifications throughout the development to keep tenant utilities low. The gym will be transformed into a multi-use community center, internet café with co-working space, fitness room, bike share program, and a traditional game lounge. Exterior amenities include a playground, basketball/pickle ball court, community garden, and green space. The property will offer 43 parking spaces, including two electric vehicle (EV) charging stations, ensuring convenience for all residents. The total project costs will exceed $16.4 million and involve a complex financing application to the Illinois Housing Development Authority. This will be GROWTH's fourth attempt at the highly competitive financing that is disbursed statewide to both metro and non-metro projects. Northside Lofts falls within the non-metro category, making it even more competitive. Developments of this type include multiple layers of financing that go beyond traditional debt. 'The Northside Lofts redevelopment is a key effort by GROWTH,' said Brian Hollenback, President/CEO of Economic Growth Corporation. 'Not only will the Northside Lofts redevelopment address the community's housing needs, but it will also revitalize a long-vacant historic property, strengthen the local tax base, and provide exceptional amenities for residents, all within close proximity distance of downtown Aledo.' No registration is necessary. Attendees will be offered light refreshments at the event. For more information, visit here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
