It’s been a wild 12 to 18 months in the stock markets. We’ve heard the stories of about the wild rides in AMC Entertainment, GameStop and other stocks in the last 12 months… If you happen to have made some money on these: great! Did you plan for (and pay) capital gains taxes before you bought the new car with the proceeds?
If you held the stock for less than 12 months (aka short term capital gains) you will owe up to 37% in federal taxes plus your state’s STCG taxes. If you waited more than 12 months to sell, then you’ll pay long term capital gains which are up to 20% federal plus your state’s LTCG rate. For more on capital gains taxes, see our key tax numbers.
Need help with taxes and or need coaching to avoid forgetting to pay the taxes? We partner with great CPA firms. Reach out – we’d be happy to help!