JMF CPA LLC

 

7800 Glenmore Drive

PO Box 1297

Powell, OH 43065

 

Phone: 614-408-3730

Fax:     614-408-3731

Cell:     740-972-0858

 

Email: jo@jmfcpallc.com

Website: www.jmfcpallc.com

July 2024

Warding Off Capital Gains Tax Fears

Warding Off Capital Gains Tax Fears

Everyone wants to minimize taxes owed, but the suitability of an investment for you is more important than whether you may, at some time, owe capital gains tax on it. The point is to handle capital gains and not avoid attractive investments that may generate the tax.


KNOW THE FACTS
Long-term capital gains apply to the appreciation of assets you sell after owning them for more than a year. Gains on assets sold within a year of purchase are taxed as ordinary income.


Long-term federal capital gains taxes are 15% to 20% and may be as low as 0% for lower income taxpayers, potentially making capital gains less costly than regular income tax. Remember to budget for the tax you'll owe on gains.


HARVEST LOSSES
Sell losing investments and replace them with assets that offer more promise. Then offset realized capital gains with those losses. But be aware that you'II lose your tax advantage if you repurchase identical securities within 30 days of selling them.


Remember, all of your investments should help move you closer toward your finanical goals, even if it means paying capital gains taxes.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.