Tax Tips

Capital Gains

When you sell or exchange assets like real estate, stocks, or bonds, you may incur capital gains (profits) or losses. A capital gain occurs when the sale price exceeds the asset's purchase cost, while a capital loss arises when the sale price is lower.

Short-Term vs. Long-Term Gains:

Short-Term: Assets held for 1 year or less; taxed as ordinary income (10%-37%).

Long-Term: Assets held for over 1 year; enjoy lower tax rates (0%, 15%, or 20%).

Offsetting Gains and Losses:

Losses can offset gains to reduce taxable income.

Deduct up to $3,000 annually ($1,500 if married filing separately); excess losses can be carried forward.

Special Exemptions:

Exclude up to $250,000 in gains from the sale of a primary residence ($500,000 for married couples) if ownership and use criteria are met.

Maximize your tax savings with smart planning.

Cryptocurrency and Taxes

Cryptocurrency is taxed in most countries, often as property or a financial asset. Key points to keep in mind:

Capital Gains: Selling, trading, or using crypto can trigger capital gains tax based on the difference between purchase price and sale value.

Income Tax: Payments, mining, or staking rewards are taxable as income.

Airdrops & Forks: Free coins are usually taxed as income when received.

Losses: Use crypto losses to offset gains and potentially lower taxable income.

Reporting: Detailed transaction reporting is required, and non-compliance can lead to penalties.

Navigating crypto taxes can be complex. Stay compliant and maximize savings with professional advice tailored to your needs! ​