Taxes and Investing
A major concern for all investors is to hold down the expenses of investing, which reduce your gains. Expenses fall into two categories: direct investing expenses (broker commissions, for example) and taxes. I will cover investing expenses in Chapter 10. Taxes that you pay or avoid in investing are controlled by when and how you buy and sell stocks. There are two major forms of taxation on investors: capital gains and dividends. However, before I discuss taxes directly, there are strategies to avoid some taxes and defer others until much later.
Choosing to Defer Taxes
Taxes are a part of our lives and there is no getting around that fact. That said, there is no legal or moral reason for you to pay any more than you are legally ...