Nothing beats making a good investment. It can feel like you’ve made a ton of money for literally doing nothing. But wait, what’s this, Uncle Same wants their piece of your profits? You did all the work; why should the government get any of it?
When you sell one of your investments for a profit, you’ll owe what is known as capital gains tax. Can we learn how to avoid capital gains tax? Unfortunately, there is no way to avoid altogether paying these taxes, that’s called tax fraud and is a big no-no, but there are ways to reduce the amount you’ll owe.
This post originally appeared at Have Your Dollars Make Sense.