While the market in recent years has many investors doubtful, stock investments are still the way most people plan to increase their wealth. That strategy has been aided by the passage of the Jobs and Growth Tax Relief Reconciliation Act last year. There are new tax treatments that make stock investments work harder to build wealth, beginning with the reduced capital gains tax rates. That is further enhanced by a similar reduced tax treatment for dividends. Investment tax expert Seth Hammer walks you through the ins and outs of tax planning for stock investments—including mutual funds, exchange traded funds, qualifying small business stocks, and other options. He looks specifically at how taxes can play into investment decisions and gives numerous clear-cut examples of how to work through the decisions that have to be made when choosing investments.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.