Shares/Stock How Do You Minimize Taxes on Investment Gains?

[Jasmine]

The propose of investment is to have capital gains (return on your investment). Whenever there is gain, you also need to pay taxes. Therefore, when you are making profits form your investment, you also need to plan your taxes. This will ensure that your returns are maximized. One of the most common strategies for this purpose is to take advantage of tax-advantaged accounts such as individual retirement accounts (IRAs), 401(k) plans, and health savings accounts (HSAs). These accounts offer tax benefits such as tax-deferred growth or tax-free withdrawals for qualified expenses. You can also sell losing investments to offset capital gains and reduce tax liabilities.

 

[Suba]

Each country has different tax rules, in my country individual retirement accounts and plan and health savings do not apply to reduce the amount of tax. In my country, income tax from dividends will be deducted directly from 10% income tax. Meanwhile, stock sales transactions will be subject to a rate of 0.1% instead of capital gains. So when you sell stocks, whether for a loss or profit, you will be subject to tax which is immediately deducted and allocated to your investor's fund account.