There was a time when the tax avoidance game was easier to play. You could hold onto appreciated stock while eliminating risk by setting up an offsetting short position (“shorting against the box”). Congress took away that gambit. It has also made exchange funds (in which you trade in appreciated stock for shares in a diversified pool) not worth the bother. Find out how to potentially minimize capital gains tax or avoid them all together by downloading our free white paper.
When you sell an investment at a profit, you will owe capital gains taxes on the money you make. Fortunately, investors can take steps to minimize the capital gains taxes they pay and keep more of their money in their own pockets. Choosing the right kinds of investments, and choosing the right vehicles for those investments, are two ways to cut down on capital gains taxes without impacting the return on your investment.