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Four Ways to Duck Taxes on Investments

Source: https://forbes.com/sites/baldwin/2020/10/01/tax-smart-investing-four-ways-to-duck-taxes-on-investments/#6ca6d82b53e7 - Oct 1, 2020

It can be expensive to be a saver: You owe federal income tax on your profits, plus, sometimes, a 3.8% investment surtax, plus, in most places, state income taxes. Tax-wise investors minimize these burdens. This survey will look at four varieties of tax wisdom.

Until this year, the basic rule was that you should defer gains and accelerate losses. You’d let your winners ride while capturing deductions by closing out losing positions. Capital losses can offset any amount of capital gains plus up to $3,000 a year of ordinary income like salaries. Unused losses can be carried forward indefinitely.

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Category: General Business