Frequently Asked Questions

Investment

Question:
What investment opportunities does your firm offer?

Answer:
The investment division, Tellone Management Group, Inc., offers a wide variety of investment opportunities for all types of investors. Through the institutional brokerage house arrangement, investors are able to open many different types of accounts, all of which will be directly managed by Tellone Management Group. Or, as an alternative, investors can invest in one of the unique investment partnerships. Each partnership offers a specific asset allocation, ranging from conservative to aggressive portfolios.

Question:
How do you bill your clients for investment management services?

Answer:
All accounts under management are assessed a fee based on a certain percentage of the Net Asset Value of the account. This percentage varies based on the amount of assets under management.

Question:
I will be retiring soon and don't want to leave my retirement plan with my current employer. Can I transfer these assets out of my employer's retirement plan?

Answer:
The IRS allows participants of retirement plans the option to rollover their assets directly into an IRA Rollover account. This type of transfer will preserve the tax-deferred status of the assets, while at the same time giving the individual more investment flexibility. Tellone Management Group is available to assist you with this type of transfer.

Question:
Although I am interested in obtaining professional investment advice and services, I also would like to trade securities on my own. Do you offer this type of arrangement?

Answer:
In addition to Tellone Management Group's ability to directly access and manage your account through the institutional brokerage house arrangement, clients can still access their accounts via the Internet. From there they can monitor their account, trade securities, and find valuable research.

Tax

Question:
Should I pay my fourth quarter state tax payment early?

Answer:
Yes, but only if you won't be paying alternative minimum tax.

Question:
What is the alternative minimum tax (AMT)?

Answer:
It is a parallel tax system that is computed each year along with regular income taxes. You pay the higher of the two calculations. The difference is that some deductions are not allowed for AMT while they are allowed for regular tax (i.e. state income tax payments). Also, some types of income that are not taxable for regular tax, are taxable for AMT (i.e. certain types of municipal bond interest).

Question:
Do I need to make estimated payments?

Answer:
The tax system is a "pay as you go system" with 1/4 of your total tax due in quarterly tax payments. The IRS and state charge interest on late payments. If your income is from wages and you had enough tax withheld, then you will be deemed to have made the payments on time regardless of which month the tax was withheld. Most taxpayers fall into this category. However, if you have large amounts of income which is not subject to withholding (stock gains, interest & dividends), you should review your tax liabilities to make sure that enough is paid to avoid the penalty.

Question:
How much of my capital loss is deductible?

Answer:
You are allowed to deduct $3,000 of capital loss each year in excess of any gains. That is, you combine your losses with your gains. If you still have more losses than gain, you can deduct up to $3,000 of it. The excess carries over to the next year.

Question:
I just sold my main home. Will I owe tax on the gain?

Answer:
The old rules of deferring the gain on the sale of a home as well as the one in a lifetime election are gone. Now a married couple can sell their main home and exclude up to $500,000 of gain. The only requirement is that they live in the home for two out of the last five years. If you have rented the house, you may have some income from the recapture of depreciation