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How Does Taxes Work On Stocks? [Gains & Losses]

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If you are thinking about investing in stocks, it is essential to be aware of the tax implications. Here is a brief overview of how taxes work on stocks so that you can make the best decision for your situation.

When you buy stocks, you will pay taxes on any gains you make when you sell them. The tax rate on capital gains is usually lower than that on ordinary income, so this can be an excellent way to reduce your overall tax bill. 

However, if you lose money on your stocks, you can deduct those losses from your taxes. This can help offset any gains you made elsewhere, and it can also help lower your overall tax bill. In this blog, you’ll explore taxes on stock gains and losses and how to calculate and lower your capital gains tax. So, let’s get started!

This post originally appeared at ValueWalk.com.