Tax Tips: What's the story on Capital Gains?

Currently, capital gains tax rates are more favorable than regular income tax rates. That's why it's important for taxpayers who own stocks, bonds, mutual funds, or certain other investments to pay attention to the rules.

Favorable capital gains rates apply when the taxpayer has held the investment for more than a year, referred to as "long-term." If you hold an investment less than a full year, you don't get capital gains rates. So it's important when you're selling an investment to look at how long you've held it. You may want to hold it just a little longer if you're close to a full year of ownership.

What is the capital gains tax rate? If you're in a higher tax bracket, the capital gains rate is 15%. If you're in a lower tax bracket, the capital gains rate is only 5%. There are some exceptions to these rules, but these will apply to most taxpayers.

It pays to look carefully at your holding period for an investment. You could save yourself a significant amount of tax by ensuring that you've got a long-term holding period and are therefore able to get the benefit of capital gains tax rates on that investment. More information on Capital Gains can be found on the IRS website.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

The 10 Most Overlooked Tax Deductions

Don't overpay taxes by overlooking these tax deductions. See the 10 most common deductions taxpayers miss on their tax returns so you can keep more money in your pocket.

Read More

Brought to you by TurboTax.com

How to Find a Good CPA for Your Taxes

Finding a good CPA for your taxes is simple with these seven tips: 1. Ask about their specialization; 2. Verify their identification number, 3. Look up their license, 4. Consider their experience, 5. Confirm their willingness to sign, 6. Ask for advice, and 7. Determine their fees.

Read More

Brought to you by TurboTax.com

Reporting Self-Employment Business Income and Deductions

Self-employed taxpayers report their business income and expenses on Schedule C. TurboTax can help make the job easier.

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.