This one will be taxable, meaning that AT&T will get a $3.43 billion income tax deduction, saving $1.2 billion in taxes at current tax rates.
The most popular form of equity release scheme is a "lifetime mortgage": you take out a mortgage on a percentage of your property (usually a maximum of 35% of the value of the house) in return for a tax-free lump sum, which you can spend or use to create an income - but remember that any income you generate in this way will be taxable.
This means that part of your gain will be taxable, so you'll need documents substantiating every dollar of your home's basis, even if your gains are well below $500,000.
Even if it does prove popular there are aspects of this scheme that pensioners should be wary of - for example the pension income will be taxable, which may make pensioners think twice before they choose this over putting the money into a tax-free vehicle such as an ISA (individual savings account).
The cash purchase price will be taxable to Central investors.
You must have lived in it for a minimum of two years, otherwise any gain will be taxable.
However, he warns that the income will be taxable, which means some savers should think about whether an Isa may be a better home for their money.
In April the top personal tax rate will go up to 50% on salaries above £150,000, and employers' pension contributions will be taxable for employees earning more than £130,000.
Stamford recently levied property taxes on some nonprofit organizations, including the Y.M.C.A. and the Italian Center, and the Americares space, said Mr. Kerwin, "will be taxable just like the rest of the building".
If you are facing an alternative tax liability, do not prepay state and local taxes for 2004, and do not exercise any incentive stock options -- the difference between your cost and the market value will be taxable as ordinary income.
