When i sell stock how is it taxed
Waiting a Year to Sell Stock Lowers Your Tax Liability If you are trying to lower the amount of taxes that you pay on your investments, it is best to wait a year before selling the stocks, since long-term capital gains are taxed at a lower rate. One of the best tax breaks in investing is that no matter how big a paper profit you have on a stock you own, you don't have to pay taxes until you actually sell your shares. You generally pay taxes on stock gains in value when you sell the stock. If a stock pays dividends, you generally must pay taxes on the dividends as you receive them.