Stock Investment Taxation

Stock investment taxation refers to the taxes you may owe on profits made from buying and selling stocks. When you sell a stock for more than you paid, the profit, known as a capital gain, is typically subject to tax. The rate can vary based on how long you held the stock: short-term gains (held for one year or less) are usually taxed at higher ordinary income rates, while long-term gains (held for more than one year) benefit from lower tax rates. Additionally, losses can sometimes offset gains, reducing your taxable income.