What you should know before you sell.
If you think of the sale of assets such as stocks, you'd better plan ahead. A little planning now can save you a lot of tax on capital gains later when you file your return.
Here are some mistakes to avoid and what you can do to avoid paying capital gains tax you should:
error # 1
not: for sale at a profit shortly before that qualifies profit as a long-term capital gain
Do: .. Shot from the sale of an asset that went in value as a long-term gain
the difference in tax rates between short-term gain and other long-term can be significant. You start if you do not check to make sure you know exactly when you bought the asset.
Make sure that you have held an asset that went to value long enough to qualify for the long-term status. For most assets, which is more than a year.
Do not be too eager to sell when the year is up. The IRS says more than a year. If it is exactly a year you just made a sale in the short term
Error # 2
Do not :. Wait investment loser, just to avoid taking a loss
Do :. Consider selling assets at a loss to offset capital gains
If you value good investment because you have faith they will come back. in value, that's fine.
If you are hooked because you do not want to admit that you have lost money, or you feel the investment you must something, it's not so great.
When an asset falls in value, you lose money if you realize that the loss by selling or not. If you would not buy assets now, you probably should not keep it.
Moreover, if you sell in a year you have also sold other assets at a gain, you can offset the gains made with your loss. You could save on taxes and then move on to more profitable investments
Error # 3
Do not :. sell shares that have increased in value, and then donate. cash
Do: Giving stock to charity instead
Call it an escape if you want, but here's a tax break .. If you make a stock donation to charity, you get a tax deduction for the amount it is worth now.
In addition, you do not have to pay capital gains tax on it.
Mistake # 4
not :. too sale of assets to a gain in a year or in a year you make exceptionally good money
Will: Watch your tax bracket and to sell assets which have been in value in the years to low-income
the higher your level of income, the tax rate on earnings lower capital .. in a slice of sufficiently low income your tax rate on capital gains may be 0 percent.
Be careful not to sell too much at once or you bump into a higher tax bracket.
error # 5
not Wait investment than you think just to avoid paying tax on capital gains
do :. Remember that the investment outweighs tax evasion every time.
There are worse things than due taxes. Losing money, or keep your money in something that does not value, is one of them.
If you do not believe something is a good investment, it is generally better to sell and move on, even if it means paying taxes
How often do you check your stocks and other investments
photo credit:.? miguel77 via photopin cc
0 Komentar