Tax-loss harvesting, asset location (which accounts hold which assets), and holding periods dramatically affect after-tax returns. Long-term capital gains (assets held > 1 year) are taxed at lower rates than short-term gains.
Answer: More than 1 year. Gains on assets held over 1 year qualify for lower long-term capital gains rates vs. ordinary income.
Answer: Selling losing positions to offset capital gains taxes. Selling losers to realise losses offsets your capital gains, reducing your overall tax bill.
Answer: Claiming a loss if you repurchase the same stock within 30 days. If you sell at a loss then buy back the same security within 30 days, the IRS disallows the loss deduction.
Answer: Roth IRA. Roth IRA contributions are after-tax, but all growth and qualified withdrawals are completely tax-free.
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