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This Element is an excerpt from The Truth About Paying Fewer Taxes (9780137153862) by S. Kay Bell. Available in print and digital formats.
Made investment profits? Great. Now, don’t pay the tax man more than you have to!
Your investment plan paid off. You now have a nice nest egg. Don’t sabotage your portfolio by making moves that cause costly tax consequences. Timing your sale, when possible, can determine how your gain will be taxed. When you hear “capital gains,” you probably think of the preferable tax rate most investors get when they sell for a profit. But actually, there are four capital gains rates....