What Documents Do I Need for Capital Gains Tax?

As you probably know, the IRS recently received a significant funding boost from the Inflation Reduction Act. The IRS is hoping to increase the audit rate from its current sub-one percent performance, focusing on higher-income tax returns. Examining higher income returns makes sense, as does investigating returns with income from sources that aren’t easily verified. For example, the IRS reports that for ordinary wages and salary income, compliance with reporting and paying income tax is nearly perfect. In contrast, for income from harder-to-verify sources like small businesses, noncompliance may be as high as 55 percent.

Jun 7, 2024

Ways to Offset Capital Gains

Ways to Offset Capital Gains

Profiting from the sale of an investment, such as rental property, land, or stock shares, will generate a capital gains tax liability.

May 20, 2024

Where Do You Record Unrealized Gains and Losses?

Where Do You Record Unrealized Gains and Losses?

Investments that have increased in value and are sold for profit generate realized gains, which are subject to capital gains taxes. Unrealized gains, on the other hand, are gains on paper that won’t be taxed unless you sell the investment for a profit.

May 17, 2024

How Many Times Can I Claim Capital Gains Exemption?

May 6, 2024

Do You Pay Capital Gains on a Roth IRA?

Do You Pay Capital Gains on a Roth IRA?

During the decades since traditional pension plans started declining, people have become increasingly responsible for creating their own retirement income. Many companies help by offering a 401(k) account, but not everyone is eligible for an employer-based retirement vehicle. For those investors, one crucial component of their retirement strategy is saving in IRAs (Individual Retirement Accounts). IRAs have numerous variations, but the two primary types are traditional and Roth.

May 2, 2024

Do You Have to Pay Estimated Taxes on Stock Gains?

Investing in the stock market can diversify your income. And while stock gains are a cause for celebration, you will owe capital gains tax on the increase in the asset’s value. If this is your first time investing, you may not know that the IRS requires an estimation of taxes to be paid quarterly and not just once a year on April 15th.

Apr 18, 2024

Download The Capital Gains Tax Calculator

Cap Gains Calculator For Investors
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