How to Avoid Capital Gains Taxes
![CAPITAL GAINS: DETERMINING YOUR TAX BASIS CAPITAL GAINS Taxes: DETERMINING YOUR TAX BASIS](https://groco.com/wp-content/uploads/2021/02/capital-gains-tax.jpg)
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
Simple Strategies for Avoiding an IRS Audit
Simple Strategies for Avoiding an IRS Audit sounds easy, but is it? Yes! Are you one of those individuals where the fear of an IRS audit keeps you awake at night? Well, you are not alone. It is one of life’s more complex fears. Never fun going into a room with someone that wants money…
Strategies for Representing Yourself in an IRS Audit
Strategies for Representing Yourself in an IRS Audit Have you been selected by the IRS for an audit? It’s OK. Relax; you can get through this. Although we advise you to never try to go through an audit by yourself, if you really like a challenge and would rather do it by yourself, there are…
U.S. Government Could Lose Billions Due to Fewer Audits
U.S. Government Could Lose Billions Due to Fewer Audits Taxpayers rejoice! There may actually be some good news about tax returns this year. The US Government could lose billions due to fewer audits. That’s because according to reports, due to reduced staff, the IRS may be forced to reduce the number of audits it would…
- « Previous
- 1
- …
- 470
- 471
- 472