Will I have To Pay Tax On The Sale Of My Investment?
Determining the tax impact of selling an investment can sometimes be complicated. There are several questions to ask to ensure that the tax liability on the sale of an investment is calculated correctly.
To help make this analysis easier, we have created the “Will I Have To Pay Tax On The Sale Of My Investment?” flowchart. It addresses some of the most common issues that arise when trying to understand the tax impact of selling an investment. This flowchart considers the following:
Capital gain versus capital loss
Long-term versus short-term status
Tax brackets and applicable rates
Medicare Surtax calculation
Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.