Calculating the tax impact of selling an investment can sometimes be complicated. There are several questions to ask a client to ensure that the tax liability on the sale of an investment is calculated correctly.
To help make the conversation with clients easier, we have created the “Will I Have To Pay Tax On The Sale Of My Investment?” flowchart. It addresses some of the most common issues that arise for a client trying to understand the tax impact of selling an investment. This flowchart considers the following:
- Capital gain versus capital loss
- Long term versus short term
- Tax rates
- Medicare Surtax calculation
This article represents opinions of the authors and not those of their firm and are subject to change from time to time, and do not constitute a recommendation to purchase and sale any security nor to engage in any particular investment or legal strategy. The information contained here has been obtained from sources believed to be reliable but cannot be guaranteed for accuracy.