What about US stock taxes?
Through stock investment in the United States When profits accrue, Capital Gains Taxmust be paid. This tax is for stocks how long have you had itDepends on:
- Short-Term Capital Gains: 1 year or less The profit that accrues when you sell your stocks is short term investment incomeIt is considered as an ordinary income tax. high tax rateThis applies.
- Long-Term Capital Gains: More than 1 year The profit that accrues when you sell your stocks is long term investment incomeIt is considered as low tax rateThis applies.
thus, Long-term investment exceeding 1 yearIt is advantageous to save taxes.
Short-Term Capital Gains Tax 세율은?
Short-term investment income lasting less than one year is considered Ordinary Income. Income tax rates vary depending on the individual’s marginal tax rate, which can range from 10% up to 37%.
Long-Term Capital Gains Tax 세율은?
Long Term Capital Gains is long-term investment income generated by investing for more than one year and is subject to a lower tax rate than Ordinary Income.
Long-term investment income is the profit generated when you sell stocks that have been held for more than one year. There are three tax rates on long-term investment income: 0%, 15%, and 20%, and are determined by your level of taxable income:
To maximize tax benefits, it is advantageous to apply the Long-Term Capital Gains tax rate for long-term investments.
What about stock investment losses?
Capital losses may be tax deductible:
- Annual maximum $3,000Income deduction is possible up to.
- loss $3,000If it exceeds , it can be carried over to the next year.
What to watch out for is when investment losses occur. order If you purchase it again within 30 days, it will be considered a Wash Sale to prevent tax evasion. In this case, loss deduction is not allowed. Therefore, if you want to reinvest in the same stock, you must purchase it 30 days before or after.
Dividend Income Tax
Dividend income is also taxed at different rates depending on the holding period:
- Qualified Dividend: If the stock is held for more than 61 days, a lower Long-Term Capital Gains tax rate applies.
- Non-Qualified Dividend: If stocks are held for less than 60 days, ordinary income tax rates apply.
If you organize it
U.S. stock taxes can vary significantly depending on how long you hold them. To reduce your tax burden:
- Considering long-term investments, it is advantageous to apply the Long-Term Capital Gains tax rate.
- By taking advantage of Tax-Loss Harvesting, you can deduct losses and save on taxes.
- A strategy of holding stocks for a long period of time to receive a Qualified Dividend is also valid.
These tax strategies can help you maximize your return on your investment.
What is your retirement investment strategy?
