If you are an investor, you know that you may need to pay capital gains taxes when you sell an investment at a profit. At the same time, however, and especially in an unpredictable market, stock losses can loom large for your investment portfolio. When you sell an investment for less than you paid, you … Read more
A well-rounded portfolio can be a great way to invest and make some extra cash. Like most financial activities, however, trading stocks will affect your income tax. The IRS taxes investment income, but there are many factors that determine exactly how they do so. What are Capital Gains? Simply put, a capital gain is any … Read more
You don’t have to be a rich mogul to start real estate investing. Though you may wish to expand your real estate empire one day, you only need one rental property and one tenant to start earning rental income. Unfortunately, one property is also all you need for the IRS to take notice. Make sure … Read more
Offering free trades with no minimum account balance, Robinhood has become a popular investment site for those who wish to dabble in stocks and cryptocurrency. Unfortunately, the IRS does not adhere to the same free fee structure as the platform. You may be able to execute trades for free on Robinhood, but the IRS will … Read more
Stock options can be a great supplement to your income. Before exercising an option, however, it’s important to know the tax consequences of doing so. This area of tax law gets complicated quickly, so it’s a good idea to talk to a CPA even after learning the basics. Intro To Employee Stock Options An employee … Read more
In the beginning, cryptocurrency was pretty basic. You could use it to make purchases and accept it as payment. If you wanted to make money, you needed to pay close attention to the crypto market, buying and selling at the right times based on the currency’s fluctuating value. In that regard, crypto worked in a … Read more
Hopefully, your investment portfolio is performing well and looking at it brings you joy. Unfortunately, certain investments can prove excruciatingly frustrating, even when they’re performing well. Investments in a passive foreign investment company are subject to complicated IRS rules, and this complication is very much intentional. So is the exorbitant tax rate on these investments, … Read more
Crypto, such as Bitcoin, is basically an electronic currency that you store in an online virtual wallet. You can buy and sell bitcoin or use it to pay for goods and services online. Many of these transactions are taxable events, however, so you need to understand the bitcoin tax before you get too far down … Read more
Capital gains taxes are imposed on the profits that you make after selling certain types of assets, like land, businesses or securities like stocks. Most capital gains are taxable income, although the amount of taxes that you pay may depend on different factors, especially your income and the length of time you owned the asset … Read more
Times change, and sometimes the tax law must change with them. A law that was fair and equitable 20 years ago may not work in today’s business environment. From time to time, it becomes necessary to alter the Internal Revenue Code. It was one such alteration that gave us section 1231 of the tax law … Read more
