Asset Class Taxation
This question is about PRC2022-Gold > FINANCIAL ASSETS > Asset Class Taxation > "TAXATION ASSETS IN REGULAR INVESTMENTS ACCOUNTS" table > "Growth Taxed Annually as LTCG" column.
The description for this column is missing from PRC2022-Gold-Users-Manual.v5, page 51, "Guidance for Determining the Numbers to Put in the Taxation Table".
Also, the descriptions in the manual are in a different order than the PRC columns.
In the manual, "tax-exempt earnings" is listed 3rd; while "Growth is Tax-Free" appears in the 5th column.
Or maybe the manual is correct and I am just not understanding something.
What is the formula for the "Growth Taxed Annually as LTCG" column?
Also, when I enter a number into the table, the row's background color turns bright yellow.
What is the mean of a yellow table row?
I am using Mode 2.
I just found this in the manual: bright yellow means the row is not adding up to 100%.
Growth taxed annually as LTCG simply means that the associated portion of the annual growth of the regular taxable account is taxed as long term capital gains. This can occur when some of your assets are in mutual funds.