Capital gain

At a tax rate of up to 24 percent, capital gains tax on that $9,000 could be as much as $2,000!

Furthermore, the capital gains tax does not adjust for inflation. So, when you sell your stocks and bonds decades after you bought them, they’re usually worth less than the money you bought them for. But your tax will be based on the original amount as if it had the same value as it did before inflation set in.

Capital gains tax may result from money earned on:

• Equity compensation, vested shares, RSUs, etc.
• The liquidation of your stock portfolio or inherited assets
• The sale of interest in a business or the sale of an entire company
Here are some of the questions you may have:

• How much should I set aside for capital gains taxes?
• What are some tax-saving strategies to preserve my capital gains?
• Can I use tax-loss harvesting techniques to minimize my tax obligation?
• Can you assist with filing my annual tax return?
• Should I make estimated tax payments – and if so, how much?
• How are state taxes computed?
• Are there better tax outcomes if I wait to cash in my investments?
• If I’m selling a rental property, how is depreciation recapture accounted for?
• If I’m selling inherited assets, what is my “cost basis”?
• Can I construct a plan for more than one year of equity vesting, exercises and sales?
Contact us at [email protected] to set up an appointment. We’d be happy to help you with an analysis of your financial plan, your tax return or to discuss accounting strategies to help your business and assets grow.