How taxes work in your taxable trading accounts❓ | The Dough Show
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- Опубліковано 4 сер 2024
- Today on the Dough Show Dustin will be talking about the tax consequences and considerations of an individual or taxable investing account. Sometimes people use taxable accounts for retirement or long term investing due to their liquidity and flexibility without penalty. That does't mean you get to avoid taxes though so today we will go over the details of the taxe you could owe including long term capital gains tax, short term capital gains as well as something called the Wash Sale rule that you will want to keep track of.
At jazzWealth.com we are really good at making sure our clients do not break any of these rules and help them reduce or eliminate their tax exposure when using taxable accounts.
these daily shows are sincerely helpful to keep me on my finance/debt payoff/retirement saving GAME! :D Keep it up Jazz Wealth!
It’s 2021 and I’m right here. Funny how this video doesn’t have much views cos this dude is spitting so much wisdom
Yes. I follow him on FB for 2 yrs. He is really good.
Great video! Makes sense, but glad I've got you doing the legwork 😉
Happy to do it for ya :)
I’m grateful for these videos. thank you! I’m just starting and trying to gain the big picture of things. Considering giving you a call. ;)
For those who are ETF investors in say The Total Stock Market VTI, you could just buy in the right proportion buy the S&P 500 VOO and the extended market (dont know the ticker) and you will have recreated VTI. OR could just swap VTI for VOO and wait out the wash sale rule and then buy back VTI
Chilling watching an OG Dustin video
Helpful, thank you!
this whole time i thought you were saying DOJO - its DOUGH SHOW --- lol clever clever!
Thank you , nice video 👍
If I'm investing into a taxable brokerage account using money thats been tax excluded under the FEIE, do I have to pay additional taxes (on top of capital gaines) on it when I sell the stocks years later?
So if I have stocks in a taxable account that grows from $200,000 at age 50 to be worth $700,000 when I retire at age 65, and I start selling stocks after I have retired and our joint annual income is only $36k - $75k, I would pay zero taxes on the $500,000 capital gains?
If you trade under an LLC can you avoid losing personal deductions/credits you would normally lose if you have investments?
I hope that makes sense.
Loving the videos, can you do another one that expands on this and others and break it down like I am 5, for when I own a Mutual Fund that is managed by a fund manager and taxes when they decide to sell stocks during the year. What if they sell something like 80 of the 100 stocks and I didn't know it. I get lost on the Distributions and then the Turnover Ratio. My mutual fund is MSSMX if that helps.
What if you hold a position for several years? Are there any taxes that need to be paid? How about taxes on a DRIP?
If I do a sale that falls under short-term capital gains rules, do I pay Social Security and Medicare tax or just the Federal Income tax?
Dustin you touched on the tax losses allowing you to offset ordinary income but you can also use it to offset capital gains (including in real estate). So that is one way to benefit even more from TLH. Also, you can replace the security with one that is highly correlated. An example would be replacing a large cap etf with another large cap etf that tracks a different but related index. Some indexes really are different but are like 99% correlated so that is cool. I have noticed a lot of times these will be indexes from different providers (like vanguard vs fidelity). I do wonder about this though since at what point does highly correlated equal highly identical? I dunno. Also honestly I just know this because I read the white paper of a certain service but I still am a bit skeptical of it. So you know, I could be wrong.
I do find it interesting how under certain conditions with TLH + Tax efficient accounts + being frugral. You can pay very very little taxes. That is awesome.
Oh I agree! There is so much more we could expand on with this. Wish I could find a CPA that wasn't scared of the camera hahaha
ITs interesting since personal finance is both investing and taxes and those are two different but related discplines.
Does a wash sale work in reverse. I sold some Tesla stock, that I had a huge gain on, and now I want to buy back into Tesla for about the same amount of money and at the same price per share. At tax time will I have to pay capital gains on the original sale of Tesla shares even though I rebought Tesla shares at about the same price and total amount?
Thank you so much
Dustin what about treating it like a high yield savings account 6-8 interest gains
Does the wash sale rule trigger ux you buy 1st before selling? So long as I have the capital, say I buy a second traunch of 100 shares on Tuesday for $7000 ($70/share * 100 shares). Then Thursday i sell the original traunch of 100 shares i owned at $100/share and eat that $3000 loss. Can I then claim the 3000 loss write off provision??
Technically I'm not wash sale ..id simply be liquidating 50% of a poorly performing position
This is good video. Now i'm worried about tax year.... Bunch of short term gains no loss with Roth IRA already contributed. Need to find a way to decrease my taxable income.
You dont get taxed on the Roth account . Not sure what you mean.
I love your videos...
I love that you are watching!
can you pay capitol gains tax by the month on your trading account
Thank you
Covered California isn’t really for low income when comes filling your income tax, your refund is deducted automatically without you knowing it😀
Can you make a video about Brokerage acc vs Roth ira , Thanks
Where is the best tax wise to keep Bonds in? A tax, or tax deferred or tax free account?
Tax deferred most of the time.
Hi Dustin- If I claim the FEIE (Foreign Earned Income Exclusion) how are my capital gain taxes calculated? Is it based on my Adjusted Gross Income? If that is the case do I fall in the 0% tax bracket (AGI would be less than $77k). Or, is it based on my total income before I took the FEIE? In that case I would pay 15% for LTCG.
I literally just claimed the FEIE. My tax guy put my short-term capital gains from my stock trading account against my standard deduction ($12,200) and I ended up paying $0 in taxes to the government.
I have a 401k/401k roth at work and then a couple of RO IRA with Fidelity. The RO IRA would be taxable accounts?
How about index trading not stock?
My husband told me he received the email the bank account is pending how long it take come out on his account
So when I sell stock for a profit in less than a year of owning it, I will have to pay at the end of the year? Don't you pay taxes on the profit at the time of sale??
It's when you file your taxes
What if I just want to buy stocks and not sell them for 10-20 years? Do I save money just doing that myself through Robinhood if I don’t want to pay an advisor to do the same thing?
You’ll need to open a tax advantage account such as Roth IRA to avoid tax eating up your money over 10 years
I have a forex managed account. How do I file taxes?
So if I earn 40k or less I won’t owe taxes on my investments ?
Thank u
Why do I feel your going to get a knock on your door from IRS?
awesome!! just a small suggestion, please include women as your target audience as well ;)
Mind blown. 😳🤯 that wash sale was legit. Of course can’t pull nothing on the godfather IRS. 😂🤷🏽♂️
You can try but you will be sorry hahaha
Why did my bank discourage me from rolling over my 401 k to a Roth IRA?
Laurie Larcomb taxes. Move it to a traditional ira.
Taxes.
Or they want to continue screwing you with high fees. 401k plan expense ratios are usually way higher than what you can get on index funds in a Roth IRA. Look at ypur plans expense ratio vs Vanguard.
@@referralhelper You will be taxed viciously on the whole $ amount you roll-over into a Roth IRA (You get taxed on money going in but not coming out). It might be better to roll-over the entire $ amount into a Traditional IRA (Tax deferred until you take out) to avoid the upfront taxes and only pay on the amount that you pull out each time. You might want to look into rolling over your 401K in small amounts, on a yearly basis and avoid the huge tax hit. It's always best to check with your Finance agent, CPA, or Tax Accountant for the best way for you to handle your 401K roll-over, so that you can avoid taking a large tax hit.
How are dividends taxed then
Do i have to pay taxes if i keep my money gain in my broker
Yep
Dony buy mutual funds or etfs with high turnovers. That will kill you in taxes as the fund divies put capital gains. Those capital gains look good on paper, but they dilute the value of the fund. High turnover is fine for roth IRA, Coverdell and 529 plans but you should almost never buy those for taxable accounts.
I treat my individual account like a high yield savings account. Low turnover funds that pay decent dividends to hold for long term. Much better than getting only 2.4% on a high yield savings and the lower capital gains taxes vs ordinary income really helps.
That's a good idea. Never thought about treating it like a savings account. What percentage of gain do usually get
MLPs make taxes a headache
I have max out my tfsa can I open a non tfsa account and continue tradeing but I will have to pay tax on my non tfsa account only am I correct.
Tricking the system
Great vid, please please help me understand this im new to robinhood and stocks This is crazy so u get double taxed ( example you put 10 k on Tesla and it goes up 5 k, now you have 15k ) so you take that 5 k and just move to another stock (not withdrawal)? Because then that other stock u put 5 k into , when you cash out that stock /withdrawal to bank, you just got double taxed!! I'm new someone please help me, I will get double taxed? How the hell can you make money then!!! Please someone help!!! That is literally my position ^ I took 5k gains out and just moved to another stock, so now I get taxed on the 5k I took out of Tesla and get taxed on whatever I make on my other stock ,where I put that 5k into? Double taxed ! Cmon no way!!! HELP!!! Please. I just subbed to u.
Someone please help me understand my seniro! Please
In your example you will get taxed on that 5k gain. Then when you buy something new with that 5k it is your new cost basis for that stock. When you decide to sell that stock you will pay tax on any gains made there, not on the original 5 k you put in. The 5k won't get taxed, just any gains.
@@judybee6698 appreciate it! I figured it out but u explained it better thank anyone else. Appreciate the response!
Please answer my question i will open a account with you please help me with this questions ^
Snoop Dogg was one of their big angel investors and he looooves investing in financial services! Try getting in contact with him
wow I’m stupid
That intro is horrible and annoying man. What happened to the jazz?