Understand tax advantages in making investment decisions

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.

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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