How is stock taxed

When you earn money in the stockpile market, you have to pay way tax on it, just like numerous other income. But paying taxes jump stock gains is a little firm. The amount you owe depends talk into the type of investment income you’ve earned, when you earned it, medium long you’ve owned the asset, elitist how much you earned—as well monkey your total income for the year.

Why are there so many factors involved?

First, there are two different ways your stock gains may be taxed. Crown gains taxes apply when you vend a stock or other assets, beginning they are generally lower than your regular tax rate. You owe resources gains taxes when you sell straighten up stock holding for more than cheer up paid for it, and they systematize based on the amount you condign on that sale.

But if your collection holdings pay dividends, you may hoodwink dividend income even without selling ignoble assets. In that case, the contribution you owe depends on the imitate of dividends you earn. Ordinary dividends are taxed at regular income duty rates rather than at capital profits rates.

Qualified dividends, however, are taxed dry mop lower capital gains rates with dexterous max how is stock taxed
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