Lower Your Taxes - BIG TIME! 2023-2024: Small Business Wealth Building and Tax Reduction Secrets from an IRS Insider, 9th Edition

17

Tax Planning for Stock and Bond Investments

Taxation with representation ain’t so hot either.

—Gerald Barzan, humorist

Chapter Overview

The purpose of this chapter is for you to:

•   Understand the tax consequences of disposing of stocks, bonds, and mutual funds and receipt of dividends.

•   Understand how to compute capital gains and losses.

•   Learn what you need to accomplish in order to reduce your capital gains.

•   Learn about the Wash-Sale Rule and how to avoid it.

•   Learn about investment mistakes made by many investors such as:

– Why you should hold stocks and bonds for more than a year.

– Why you should keep good records for determining basis for both stock investments and for mutual funds and the methods allowed by the IRS ...