Serving clients in Southern California, Mark Ziebold is an attorney with experience in areas of law such as estate planning and wealth protection. Mark Ziebold has an extensive knowledge of strategies designed to reduce tax burdens and ensure robust cash flow in diverse situations.
One simple strategy for those with equity investments is to hold onto stocks that have made a return on investment for a year or more. Those stocks that are purchased and sold with the space of a year are considered short-term capital gains by the IRS. What this means is that they will be taxed at the same rate as ordinary income.
By contrast, equities held for a year or more fall within the long-term capital gain category and receive a tax break. Individuals with an income of under $78,750 may have no federal tax assessed on such gains. Beyond that income level, the tax assessed is typically 15 percent for individuals with an income of less than $244,425.
Naturally there are some situations, such as a company's merger or a speculative market rise, where selling before the term of a year has passed may be in the individual’s best financial interest.
One simple strategy for those with equity investments is to hold onto stocks that have made a return on investment for a year or more. Those stocks that are purchased and sold with the space of a year are considered short-term capital gains by the IRS. What this means is that they will be taxed at the same rate as ordinary income.
By contrast, equities held for a year or more fall within the long-term capital gain category and receive a tax break. Individuals with an income of under $78,750 may have no federal tax assessed on such gains. Beyond that income level, the tax assessed is typically 15 percent for individuals with an income of less than $244,425.
Naturally there are some situations, such as a company's merger or a speculative market rise, where selling before the term of a year has passed may be in the individual’s best financial interest.
