Now that we're officially in tax season, it time to start thinking about the tax impact of the activity in your investment accounts. As you start working with your tax preparer, it's beneficial to understand the taxes on dividends and capital gains.
Generally, the tax on long term capital gains and dividends received by an individual shareholder breaks down as follows:
|39.6% tax bracket payers||20%||20%|
|25%-35% tax bracket payers||15%||15%|
|15% or less tax bracket payers||0%||0%|
The effect of taxes on your financial plan is an important factor in your investment philosophy. Learn more about how we invest here.
Happy tax planning!