12, Nov
Tax Rules for Buying and Selling
1. Capital Gains Tax: When you sell an asset for more than you paid for it, the profit is considered a capital gain and is subject to tax. The rate depends on how long you held the asset.
2. Short-Term vs. Long-Term Gains: Short-term gains (assets held for one year or less) are taxed at ordinary income rates, while long-term gains (assets held for more than one year) are taxed at lower rates.
3. Wash Sale Rule: If you sell a stock at a loss and buy a substantially identical stock within 30 days before or after the sale, the loss is disallowed for tax purposes.
4. Cost Basis: The cost basis of an asset includes the purchase price plus any associated costs, such as commissions and fees. This is used to calculate your capital gains or losses.
5. Precious Metals: Physical gold and silver investments are subject to capital gains tax, with long-term gains taxed at a maximum rate of 28%.
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