Taxes on stock gains: how to avoid capital gains tax on stocks

Hack Your Wealth

#81: With the market rallying like crazy this past year, you might have significant capital gains on stocks right now.

Now might be a good time for some of you investors to harvest some capital gains. Maybe you’re looking to buy a house. Or maybe you just want to rebalance your investments.

But when you sell stock, you pay taxes on the sale.

And capital gains taxes can get complex because the effective tax rate you pay when you sell stock depends on whether there are long-term vs. short-term capital gains, whether there are any long-term vs. short-term losses, what your marginal tax rate is, and even whether you are required to pay the Medicare Surcharge Tax.

That’s why this week I invited CFA Scott Stratton to explain the intricacies of how capital gains taxes work. We discuss key rules and strategies you need to know to do thoughtful capital gains tax planning. If you want to learn how to minimize capital gains taxes, then don’t miss this episode.

You’ll learn:

• What types of assets capital gains taxes apply to
• Difference between short-term vs. long-term capital gains tax treatment
• How capital gains and losses work in tandem come tax filing time
• How to harvest capital losses and harvest capital gains
• Current proposed legislative changes to capital gains tax rates
• What investors may want to consider doing now before potential changes take effect

Check it out here:

https://hackyourwealth.com/capital-gains-tax-on-stocks

What other tax planning questions do you have about capital gains taxes? Let me know by leaving a comment.

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Links mentioned in this episode:

• Good Life Wealth Management
• Tax Loss Harvesting: Rules and Strategies with Bob Dockendorff (HYW022)
• How to take a year off, earn 6 figures, harvest capital gains, do Roth conversions…and pay zero taxes on it all
• How to earn 6 figures and legally pay zero taxes (updated for 2020) (HYW021)
• Avoiding capital gains tax on real estate: how the home sale exclusion works
• How the Home Sale Capital Gains Tax Exclusion Works (HYW033)
• Schedule a private 1:1 consultation with me
• HYW private Facebook community

Intro/Outro: Old Bossa by Twin Musicom.