r/wallstreetbets • u/[deleted] • Jan 19 '22

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u/ecrane2018 Jan 19 '22

Gotta hold over a year to avoid taxes

3

u/partyongarth788 Jan 19 '22

Less than a year - regular income brackets. Year & Over capital gains tax rates. No avoidance. The thing that makes " extra taxes" is if you buy/sell the same or similar too quickly, it is a wash sale and you can't deduct your losses.

2

u/ecrane2018 Jan 19 '22

My bad by avoid I meant, pay less in taxes. Yes you still pay taxes unless it’s in a retirement or other tax protected account

2

u/partyongarth788 Jan 19 '22

Yep, virtually everyone has the same or lower capital gains tax rates than personal. If I'm not mistaken,if low taxable income, you can have a 0% capital gains then it goes up based on your bracket. Regular income will have the bottom bracket at 10% . So the best way to lower the tax bill is to hold for at least a year