How to Avoid Capital Gains Taxes
For many of the nation’s high net worth individuals, much of their wealth comes from capital gains. Capital gains are better than income because they are taxed at a much lower percentage than other income. While capital gains taxes could be going down under the Trump administration, it still pays to know every trick in the book to avoid paying more taxes on them than you have to.
With that mind, let’s look at some of the important tips you should know in order to keep your capital gains taxes low. One smart move is to use a tax-advantaged retirement account when you invest. When you use a retirement account to invest, your money is allowed to grow tax-deferred, instead of paying a tax on the gains like a normal investment. Plus, if you use a Roth IRA, even your withdrawals are tax-free.
Additionally, the longer you hold your investments the less you will pay in taxes. If you hold an investment for a year or less then you will pay a percentage rate equal to your ordinary income. If you hold them longer than a year your rates decrease substantially.
Always look for opportunities to sell your underperforming stocks in order to offset the gains from your successful stocks. This will lower your tax bill. Lastly, keep track of your home improvements so when it comes time to sell your home you can use those expenses as deductions from any gains you make on the sale price of your home.
https://www.fool.com/retirement/2017/02/07/4-tips-for-avoiding-capital-gains-tax.aspx
Startup Technology Is Not Enough to Start a Movement
Startup Technology Is Not Enough to Start a Movement How many great ideas for a startup companies do you know of that never really got off the ground? Startups are a dime a dozen and the majority never become successful. Even some of the best ideas and coolest technologies fail to reach their full potential. These…
World’s Most Expensive Gem Stones
World’s Most Expensive Gem Stones Anyone who appreciates fine jewelry is always on the lookout for that perfect piece to add to his or her collection. Whether you collect for a hobby or for business, or you simply love to wear jewelry and show it off to impress your friends, then you’ll want to be…
Some States Are Fighting Back Against New Tax Reform Law
Some States Are Fighting Back Against New Tax Reform Law By Alan Olsen It’s no secret that not everyone is happy with the nation’s new tax reform bill that was signed into law last December. Among those least pleased with the bill are taxpayers that live in high-tax states. In fact, several of these states…
Top Pros and Cons of Working for a Startup
So you’re thinking about working for a startup, huh? Whether you’re just getting ready to graduate from college, or even high school, or you’re ready for a career change, a startup company might be just the opportunity you’re looking for. However, don’t expect it to be a bed of roses. While joining a startup can…