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
Use These Helpful Tips Now to Make Next Year’s Taxes Easier
Use These Helpful Tips Now to Make Next Year’s Taxes Easier The 2018 Tax season has come and gone. By now you’ve probably already forgotten about them. However, if you want to get ahead on next year’s taxes, now is the perfect time to start. The more prepared you are, the easier tax filing will…
What Sets Confident People Apart?
What Sets Confident People Apart? What makes someone successful? Successful people have many positive attributes, but what really sets them apart from others is confidence. Those who have confidence are more likely to succeed than those with self-doubt. That’s really a no-brainer, right? But what makes confident people different? Well, you can start with some…
The Best Way to Deliver Criticism
The Best Way to Deliver Criticism If done in the wrong way, criticism can break a relationship or leave someone feeling bad or upset. When critiquing, you want to avoid these negative emotions at all cost, after all criticizing is meant to help someone improve, not bring them down. Is there a way to criticize…
Social Media Platforms Trying to Shut Down Crypto Scams
Social Media Platforms Trying to Shut Down Crypto Scams The world of cryptocurrency is ripe with excitement. However, it’s just as ripe with scams. In fact, a growing number of entities are doing their part to try to curb some of these scams and protect those interested in investing in cryptocurrency. Recently, Twitter announced that…