Real estate, stocks and bonds, are a few examples of investments typically made with the hope of earning a profit at some point in the future, when the asset is sold.
However, be sure that when you decide to sell those valuable assets, and you make that anticipated profit, the federal government will be waiting to take its share. This is known as the “capital gains tax.” Understanding the capital gains tax, and how the IRS calculates it, can be helpful in finding ways to lower the amount of capital gains tax you will likely owe once you sell your assets. Taking advantage of a step-up in basis is one way to minimize your losses.
Latest posts by Scott Schomer, Estate Planning Attorney (see all)
- Many Reasons to Plan - July 8, 2019
- Use Resources Efficiently With a Special Needs Trust - July 7, 2019
- Business Structures That Provide Asset Protection - July 6, 2019