If you’re an investor holding highly appreciated assets—like real estate, stocks, cryptocurrency, or a business—understanding your capital gains tax liability is crucial for preserving your wealth. Avoiding common tax missteps can make a significant difference in how much you keep after a sale. Selling an asset before the one-year mark can trigger short-term capital gains taxes, which are typically 15% higher than long-term rates. Many investors also miss the chance to offset gains with capital losses, a strategic move that can reduce taxable income by up to $3,000 annually. Charitable donors often make the mistake of giving cash instead of appreciated stock, losing the opportunity to bypass capital gains taxes and still receive a deduction. Holding on to poor investments just to avoid taxes can hinder long-term performance, and ignoring state tax planning may double your tax bill depending on where you live. Timing matters, too—harvesting gains when you’re in a lower tax bracket can yield significant savings. Above all, working with a tax professional ensures you’re not leaving money on the table. From exit planning to estate strategies, expert guidance can help maximize your returns and build a smarter, tax-efficient wealth strategy.
source: https://capitalgainstaxsolutions.com/7-common-and-costly-capital-gains-mistakes/
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