https://www.youtube.com/shorts/KKWLpNU1jtA
𝐒𝐞𝐥𝐥 𝐚 𝐬𝐭𝐨𝐜𝐤 𝐢𝐧 𝐮𝐧𝐝𝐞𝐫 𝐚 𝐲𝐞𝐚𝐫? Short-term gains = taxed as ordinary income
𝐇𝐨𝐥𝐝 𝐢𝐭 𝐟𝐨𝐫 𝐨𝐯𝐞𝐫 𝐚 𝐲𝐞𝐚𝐫? You get the lower 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐚𝐢𝐧𝐬 𝐫𝐚𝐭𝐞𝐬 (0%,15%, or 20% depending on income)
𝐄𝐚𝐫𝐧 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐟𝐫𝐨𝐦 𝐡𝐢𝐠𝐡-𝐲𝐢𝐞𝐥𝐝 𝐬𝐚𝐯𝐢𝐧𝐠𝐬 𝐨𝐫 𝐂𝐃𝐬? That’s taxed at ordinary income too.
𝗪𝐢𝐭𝐡𝐝𝐫𝐚𝐰𝐢𝐧𝐠 𝐟𝐫𝐨𝐦 𝐩𝐫𝐞-𝐭𝐚𝐱 𝟒𝟎𝟏𝐤 𝐨𝐫 𝐓𝐫𝐚𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐈𝐑𝐀? Ordinary income tax applies + a 𝟏𝟎% 𝐩𝐞𝐧𝐚𝐥𝐭𝐲 𝐢𝐟 𝐮𝐧𝐝𝐞𝐫 𝟓𝟗.𝟓.
𝐐𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐝 𝐑𝐨𝐭𝐡 𝐈𝐑𝐀 𝐰𝐢𝐭𝐡𝐝𝐫𝐚𝐰𝐚𝐥𝐬? are 𝐓𝐚𝐱-𝐅𝐫𝐞𝐞
𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐭𝐚𝐱𝐞𝐬 = 𝐦𝐨𝐫𝐞 𝐦𝐨𝐧𝐞𝐲 𝐢𝐧 𝐲𝐨𝐮𝐫 𝐩𝐨𝐜𝐤𝐞𝐭