July 2010
Beginner
19 pages
24m
English
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The Truth About Investment Taxes
S. Kay Bell
Capital Gains Rules and Rates
You stuck to your investment plan, and it’s paid off. You now have a nice nest egg.
Now you need to make sure you don’t sabotage your portfolio by making moves that could produce costly tax consequences.
When you sell a capital asset, such as a stock, piece of real estate, or any other investment holding, the difference between your asset’s basis (its initial cost plus other expenses incurred while you owned it) and the amount you sell it for will give you a capital gain or a capital loss.
Although a loss can sometimes be useful, the goal is to come away with a gain. ...
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