There are two tax types on the money you earn, ordinary tax rates and capital gains tax rates. Capital gains taxes are taxes on the money you’ve earned in your investments, including stocks, bonds, and real estate held for investment. You must report all earnings, but there are ways to minimize the taxes you owe.
What are Capital Gains Taxes?
Capital gains are the profits or the difference between the asset’s price when you bought and sold the investment.
Each year, the IRS limits how much you can contribute to your tax-deferred retirement accounts. The limits are different for 401K vs. IRAs, as are the tax requirements.
Here’s everything you must know about retirement contributions.
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