Dear ,

The pandemic restricted many people to working online and generally spending time online, leading to the formation of more investment communities online. New, young investors arose.

However, as soon as you buy stock or bonds, you are an investor who will one day sell their investments, and either have gains or losses.

Suppose you bought stock in January 2021 and sold around August 2021 for a higher price than you bought; you will be liable to report Capital Gains (or deduct Losses) during this ongoing tax season.

There are two rates of capital gains tax:

• Long-Term capital gains tax and
• Short-Term capital gains tax

Long-term capital gains tax is paid on the stock you own for a year or more. Short-term capital gains tax is paid on stocks or investments you own for a year or less. Therefore, in my example, you will be liable to pay the short-term capital gains tax, which is taxed at a higher rate – just like your income.

This tax is withheld by your stockbroker and submitted to the IRS.

But the important question you should ask yourself is how do you report capital gains or losses?

Well, you can report capital gains and deduct capital losses on your tax return.

While at it, please note that many other types of assets attract this kind of tax, such as your house and precious collectibles or coins. When you sell them, there is a gain or loss on capital.

All these are reported in a certain format on your tax return. Hire me today to prepare your tax return and help you accurately report your capital gains and also rightfully deduct capital losses and save money on taxes.

Contact me now at (202) 618-1297 to get started.