One issue that often concerns investors is whether it would be best to make short-term investments at higher interest rates. The drawback of this investment strategy is that, once the capital gains tax is imposed, you are more likely to earn less profit than you might have expected. The reality is that long-term investments save more on capital gains taxes. A long-term investment is usually taxed at a lower rate and you often pay no taxes on your capital gains, provided you are in the right tax bracket.
Topics covered in this report include:
- When Capital Gains Taxes are Imposed
- Which Assets are Taxable?
- Reducing your Capital Gains Tax
- The Benefits of a Step-up in Basis
- How the Step-up in Basis Works
- The Impact of Ownership on the Step-up in Basis