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Short-term capital gains (assets held ≤1 year) are taxed as ordinary income at rates from 10-37%. Long-term gains (assets held >1 year) receive preferential rates of 0%, 15%, or 20% depending on yo...
Read moreNo. Retirement accounts like 401(k)s and IRAs grow tax-deferred. Withdrawals are taxed as ordinary income, not capital gains, regardless of how long you held the investments inside the account.
Read moreYes. Capital losses offset capital gains dollar-for-dollar, regardless of whether they're short-term or long-term. If you have excess losses after offsetting all gains, you can deduct up to $3,000 ...
Read morePrimary residence: If you lived in your home for 2 of the past 5 years, you can exclude up to $250,000 ($500,000 married) of capital gains tax-free. Investment property: You pay capital gains tax o...
Read moreNIIT is an additional 3.8% surtax on investment income (including capital gains) if your Modified Adjusted Gross Income exceeds $200,000 (single) or $250,000 (married filing jointly). This is on to...
Read moreIt depends on your state. Nine states have no income tax, while most others tax capital gains as ordinary income, with rates varying significantly—California can be as high as 13.3%, while Pennsylv...
Read moreReport capital gains on IRS Form 8949 (Sales and Other Dispositions of Capital Assets) and Schedule D (Capital Gains and Losses). Your broker will send you Form 1099-B showing your sales. For crypt...
Read morePartially. You can gift up to $18,000/year ($36,000 married) per recipient tax-free under the annual gift tax exclusion. The recipient inherits your cost basis and will pay capital gains when they ...
Read moreChoose the highest deductible you can comfortably afford from your emergency fund. For most people with $3,000+ in savings, a $1,000 deductible is optimal—it saves $500-700/year in premiums compare...
Read moreIncreasing from $250 to $1,000 typically saves $500-700/year in premiums. From $500 to $1,000 saves $300-500/year. Over 5 years with no claims, that's $2,500-3,500 saved. Even if you file one claim...
Read moreFile if repair exceeds $5,000, involves injury, or totals your car. Consider paying out-of-pocket if repair is under $2,500—the deductible plus rate increases (20-40% for 3-5 years) often exceed th...
Read moreYour emergency fund should be at least equal to your deductible, ideally 2-3 times that amount. For a $1,000 deductible, aim for $2,000-$3,000 in savings to cover potential claims without stress.
Read moreAt-fault collisions increase rates by 20-40% for 3-5 years, costing $900-2,500 total for an average policy. Comprehensive claims (theft, hail, vandalism) cause 0-10% increases. Not-at-fault acciden...
Read moreLeasing costs more long-term than buying, but it's not a 'waste' if it fits your lifestyle. You pay for the convenience of always driving new cars with lower payments. Think of it as a lifestyle ch...
Read moreYes! Negotiate the selling price (capitalized cost), not just monthly payment. Lowering the selling price reduces depreciation and lowers your payment. Also negotiate money factor (interest rate) a...
Read moreA good money factor is under 0.00150 (3.6% APR), while 0.00100 or lower (2.4% APR) is excellent. Anything over 0.00200 (4.8% APR) is expensive, so consider buying instead; you can also multiply the...
Read moreMinimize your down payment on a lease; only pay fees and avoid cap cost reduction. If the car is totaled, you lose your down payment, so it's better to save that money. The only exception is multip...
Read moreReturning a leased car early can be costly, as you'll owe all remaining payments plus an early termination fee (usually $500+). Consider transferring the lease, trading it in if you have equity, or...
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