News

Wash Sale Rule: What Traders Need to Know

Posted by on Feb 27, 2019 in General, Investing | Comments Off on Wash Sale Rule: What Traders Need to Know

We should naturally feel happy about having some capital gains. But we don’t. Why? The government makes us pay tax on our profit. That diminishes the overall return generated on our investment. If you’re an investor, you’d know that we can claim a capital loss. So, naturally, you’d use capital losses to offset capital gains and effectively reduce your capital gains tax. That’s right. But the Internal Revenue Service (IRS) is a step ahead of us. They have a very specific regulation on capital losses. They call it the wash-sale rule.   Let’s...

read more

How Holding Periods Affect Capital Gains Tax 

Posted by on Feb 21, 2019 in Investing | Comments Off on How Holding Periods Affect Capital Gains Tax 

Whenever we add value to a capital asset, making it worth more than the price we bought it for, we become eligible for capital gains tax. This added value becomes realized when we sell the asset. Capital gains tax can be applied to real estate, stocks, bonds and even licenses. On the other hand, if we sell something for a price lower than the one we bought it for, we find ourselves in a situation called capital loss. Consequently, we can make up for our capital losses in investment A with our capital gains from investment B and the tax system...

read more

Important Facts About Traditional IRA Accounts

Posted by on Dec 6, 2018 in Investing, Retirement | Comments Off on Important Facts About Traditional IRA Accounts

Important Facts About Traditional IRA Accounts

It’s a common misconception that IRA is an investment. IRA is, in fact, a savings account (often referred to as a retirement account) that allows you to save retirement money. If you’ve heard of traditional IRA, then you know that this basic savings plan is a great way to minimize taxes and invest in various markets. In this article, we will be viewing some important facts you should know about traditional IRA. There is a limit on traditional IRA contributions You may not have known this, but there is a limit on traditional IRA...

read more