When it comes to investing there’s a lot to learn about the types of investments and different investment strategies, and it can be overwhelming. From mutual funds to IRAs, 401ks, stocks and bonds, there’s a lot of information to understand.
When Do You Pay Taxes on Stocks?
There are several scenarios in which you may be responsible for paying taxes on the stocks you hold in an investment account. The scenario most people are aware of is when you sell a stock that has appreciated in value since you purchased it.
When Do I Not Have to Pay Taxes on Stocks?
Again, this should first and foremost be a discussion you have with your tax professional. But there are a few situations you should know about where you often don’t pay taxes when selling a stock.
Consider Working with a Professional
The tax implications of your investments will vary depending on stocks you own and the accounts you use, among other factors. That’s why it may be worthwhile to work with an experienced accountant and a financial advisor who can help you understand and manage the complexities of different tax scenarios.