Net investment income (NII), for tax purposes, is the total amount of money received from assets such as stocks, bonds, and mutual funds, minus related expenses. NII may include interest income, dividend income, and capital gains. Whether this income, minus the expenses, is taxable is determ...
For starters, the goal of stock investing is to buy shares—or pieces—of a company and eventually sell them at a higher price than you paid, when the company’s value rises. How do you do that? Follow this guide for how to invest in stocks for beginners. Feed your brain. Fund your...
The tax treatment is similar to that of the underlying asset: You owe the taxes if you make a profit. Taxes From Sale of Stock ETF Shares You're taxed for an ETF composed of stocks in the same way as you would be if you had sold those stocks. You'll pay capital gains tax ...
Capital gains: Securities held for more than 12 months before being sold are taxed as long-term gains or losses with a top federal rate of 23.8%, versus 40.8% for short-term gains (that is, 20% and 37% respectively, plus 3.8% Medicare surtax). Being conscious of holding periods is a...
A limited liability company (LLC) is one of the most flexible business structures when it comes to taxes, having the ability to elect to be taxed as a sole proprietorship, general partnership, C corp, or S corp. It is important to note that, regardless of the tax status you elect, ...
We have a progressive tax system in the United States. This implies that individuals and businesses who earn more are taxed more than those who make less money. While this ensures that those who make less money can keep more of their earnings, taxing attributions is difficult. Later in th...
Whatever is left after this netting process will be taxed accordingly if the net result is either a long- or short-term capital gain, or deductible as described above if a net capital loss. Bankrupt companies are an exception to be aware of ...
You can use the proceeds of these sales to buy other industrial stocks whose prospects you prefer, bringing your portfolio back to its target allocation. You can use the value of your loss from the industrial shares to offset the taxable gains from the sale of your tech shares, thereby reduc...
The elevator pitch for direct indexing might go something like this: performance and diversification like an index fund, but you can customize the holdings and harvest losses for tax breaks. This is all possible because with these strategies you actually own all of the underlying stocks. As a ...
How cryptocurrency is classified for tax purposes The Internal Revenue Service (IRS) classifies cryptocurrency as property, treating it like other investment assets such as real estate, stocks, and fine art. The core tenets of taxation that apply to property generally apply to digital assets, too....