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As a tax preparer this was all great info to share with people. Since taxes impact just about everybody (keywords “just about”), I always encourage people to learn the basics for their own benefit!
This may be the best summary I've heard on this topic. Thank you. The one addition I would make would be on the capital gains part. It's not closing COMPLETELY on the position. It's by individual purchase. It may have been awkward to explain, so it's good enough; but only 99% accurate.
The tricky part about long-term gains is if you are adding to your position throughout the year. The full year begins on the day of your last purchase if you want to sell it all after a year. 366 days
The holding period for each share beings on the day you purchased that share. You specify which shares you want to sell, or set it for FIFO - first in; first out. And why would you sell it all at once?
He makes everything so easy to understand. With pictures, grapes, coloring and lettering, it’s just God send for someone like me who is just beginner in the field. It’s better than anything. 정말 감사합니다.
You are an amazing teacher! I am binge watching these videos and my mind is completely blown that I am understanding any of this. Trust me when I say it’s because of the way you teach!
Brian thank you! These videos are extremely helpful. Especially since this is the first year I will be doing taxes with a substantial income. Soon it will hopefully be a substantial income as a small business. Anyways Hope you have a great holidays man!
The one watch out I’ve experienced myself several times. Your tax documents can be amended by your brokerage after initial release. I never do my taxes before March 15th for this reason, I usually do them on April 1st. You’re usually safe by then.
Do the profits/losses we need to report for IRS/Taxes also include day trading and options or only stocks? Also, can we claim gains/losses on foreign stock investments like NIFTY/HKSE ?
Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.
Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
Thanks for the information. Question, is the 3k limit on capital loss limited to stocks or is that the overall limit you can claim for the calendar year? I have other investments (property) and wanted to know how claiming stock losses would impact other investments. Thanks again
You can use all your capital losses (beyond $3k) to offset your other capital gains (whether they be from the stock market, crypto, art, properties, etc). If you have more capital losses than capital gains, then you are capped at using $3K of capital losses to offset your non-capital gain income (such as wage income, interest income, dividend income, business income). I hope that helps!
Thank you for clarification. Do these taxes apply the same way investing through an S-Corp entity? Is there any tax advantages or deductions in investing through an S-Corp entity?
Thank you for this thorough video! Can you explain the tax implications from investing in index funds or ETFs in taxable brokerage accounts please…and ways to reduce taxable gains in those accounts??
Brian, another good question. If I buy one share of Tesla in January and another in June but sell one share of Tesla, the following February. Will I pay short term or long-term capital gains tax?
Are any of the brokerage fees deductible? Are they considered part of the costs basis when you buy the stock? Are gambling/lottery losses part of the $3k per year limit?
I absolutely love how you explain this so well. I was wondering how the taxes work. Like one year you make money on the stock market and of course you pay with money earned. And then if you lose the following year, I was wondering how that worked. I love that we can at least take it off of our taxable income. At least that is fair so that you are not only paying taxes but you can actually claim the losses. So it all balances out. And if you have lots of losses, you can get those back over time. I'm a very new investor and trying to learn as much as I can before jumping in. Thanks so much.
If your Stock interest and dividends are set to automatically reinvest within the brokerage account, is that a taxable event, or do you only pay taxes when you withdraw from your account?
Hi! This my first year playing the stocks! You said the mid February they gonna send out taxes. Are they gonna send to your house? If not how do I get it! Thank you for your help!
Great video, just discovered your channel and subscribed after listening to some your stock market videos which explain things very well. Thank you so much!
If I buy some stocks then 6 months down the line. I buy more of the same stocks. In order to get the tax free. Do I have to only sell the stocks I bought before the second order, do it rollover into the first order?, or do I have to wait another year?
I am negative on stock this year. I am planning to sell that stock when it hits my buy price next year. I am not olanning to hold for 1 year. Since, my stock became positive in another year and compared to last year, there is gain. However my net gain in 0 because i didnot make money. Since, i sold in the next year and there is gain compared to last year, do i pay need to pay tax on that? Please advise
Can you make video on how dividends are taxed? and how tax would look like if you invest in dividend stock overtime over the year(s) and how the taxes work in those scenarios?
They’re taxed when they DRIP back. It’s no different than receiving the dividend and you buying more of the stock. It’s a good question but it’s more of a convenience thing than a tax deferral thing.
Hello Brian and thank you for the nice video. Could you please answer me which is the amount of taxes in stocks for not US Citizens ? Thank you so much !
Hi, I love your financial videos. Keep them coming . Couple of questions for you, Q1: On the $3000 limit (loss) for taxable income deduction, if you are married and filing jointly, would the number go up?? if so how much?? Q2: If you re-invest the dividend on the same stock do you still pay taxes on the dividend for that year? Thanks
Hi, how are we taxed when rolling options? If I sell a call option for $1 and then i buy back the call option for $5 and sell another call 2 weeks out for $6 all in the same day. Will i get taxed for $7 or the net of $2?
Very good video, thank you! For 2024 the 'no capital gains' limit is 47k of 'taxable income. Do stock sales, dividends and interest count as 'taxable income' or is that limited to wages etc? Thanks again!
Question. Once capital losses in stock market are carried over to next year can I use the 100% of loss to offset capital gain in stocks? Or it’s limited to 3k like it is on the wages?
Yes, you can use all the losses to offset other capital gains. If you have more losses than gains, then it’s restricted to $3K to offset against your other income.
Thank you for detail explanation. My question is related for international individuals who are living outside the us and trading us market such as Saudi in Saudi Arabia. Do they pay taxes on their gains or just high percentage on Dividends yields ?
Yes, they will carry forward behind the scenes in schedules that are not part of the tax forms that you file. It will be in your historical records within your software history (the worksheets).
Hi Brian If you lost 20k this year so can didact 3k and will have 17k on not used and next year make 17k can I use the previous year loss on this year profit?
Yes, in your example, you could use the full $17K of losses to offset your $17K of capital gains. The $3k loss limitation is only applicable if you have more capital losses than capital gains (to offset against other non-capital gain income - such as wage income, business income, interest income, dividend income, etc). I hope that helps!
Hi Brian. Thanks for this helpful video. With regard to the 1099-INT, if some interest is only taxed at the federal level (T-Bill interest) and some is taxed at all three levels (fed., State, local) will the 1099-INT separate out the the two types of interest interest for you or do you have to do that yourself via checking your brokerage account history of interest gained over the year? Thank you.
Do you have to pay taxes for interest and dividends generated from investments within an IRA or 401K? (Assuming i am not yet taking any distributions from any of those account).
Hi Brian, you mentioned about federal Long term and short term taxes. How about state taxes? If I live in California? If I live in Nevada? Please explain . Thank you
Does this apply to to retirement accounts like IRA’s or 401k’s? To my understanding all the income is simply tax deferred until you physically remove it.
Join our EXCLUSIVE Investing Community at: ClearValueInvesting.com
GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax
I love when the video thumb is of you smiling. Your channel is the greatest free education I’ve ever gotten.
As a tax preparer this was all great info to share with people. Since taxes impact just about everybody (keywords “just about”), I always encourage people to learn the basics for their own benefit!
Thank you BK Randy for all the support! I appreciate it so much!
I would love to see an advanced tax series about the topics mentioned at the end including tax loss harvesting
I hate taxes
Thank you for getting here 1st Trump!
@@clearvaluetax9382trump 1st 2024. ?????
🧑🎄🍪
@@clearvaluetax9382 Merry Christmas 🎁🎄
Georgia also announced income tax rates will drop every year for 5 years.
I wish I had found your channel years ago but I’m glad I found it now. Thanks for sharing your knowledge, I’ve learned so much from you!
This may be the best summary I've heard on this topic. Thank you. The one addition I would make would be on the capital gains part. It's not closing COMPLETELY on the position. It's by individual purchase. It may have been awkward to explain, so it's good enough; but only 99% accurate.
Yes, I didn’t want to confuse people. The 90% of people.
Can you please cover Dividends vs Royalties and Qualified vs non Qualified?
Great content!!!
The tricky part about long-term gains is if you are adding to your position throughout the year. The full year begins on the day of your last purchase if you want to sell it all after a year. 366 days
Wrong
You don’t need to sell it all at the same time. In fact, that’s a risky thing to do. Better to DCA out.
The holding period for each share beings on the day you purchased that share. You specify which shares you want to sell, or set it for FIFO - first in; first out. And why would you sell it all at once?
If you sell via “lots” you can get around this issue.
Great video, simple explanation of taxes that fits 90 percent of us! 😊
He makes everything so easy to understand. With pictures, grapes, coloring and lettering, it’s just God send for someone like me who is just beginner in the field. It’s better than anything.
정말 감사합니다.
Thank you for the support and kind words Socho!
Thank you Brian, appreciate the graphics on screen for an easy to follow format!
Thank you for the feedback and all the support!
You are an amazing teacher! I am binge watching these videos and my mind is completely blown that I am understanding any of this. Trust me when I say it’s because of the way you teach!
I just started on webull and was stressing about taxes . Thank you I'm so much better now . Much much better😊
you did an awesome job; the info is easy to understand; the length of the clip is perfect; not too long; not too short. Thanks for your time.
I think I get smarter every time I watch one of your video.
This is so clear and helpful. Thank you Brian. I always learn so much from your videos. Happy holiday!
Thank you for the feedback and support Shanshanlin! I appreciate it so much!
Brian thank you! These videos are extremely helpful. Especially since this is the first year I will be doing taxes with a substantial income. Soon it will hopefully be a substantial income as a small business. Anyways Hope you have a great holidays man!
I wish you the very best in your small business endeavors Nathan!
The one watch out I’ve experienced myself several times. Your tax documents can be amended by your brokerage after initial release. I never do my taxes before March 15th for this reason, I usually do them on April 1st. You’re usually safe by then.
3/15 is my bday. But taxes can be amended at any time I think up to 3 years later bro
Do the profits/losses we need to report for IRS/Taxes also include day trading and options or only stocks? Also, can we claim gains/losses on foreign stock investments like NIFTY/HKSE ?
Thanks for being our Tax Professional.
My pleasure and thank you for the support Billy!
Here I was stressing about my investment taxes, but it really isn't as complicated as I thought. Thank you!!
I’m just here to say I appreciate this channel. Such great content for real people
That is so kind of you! Thank you for all the support Aduncaroo!
Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.
Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
Hmmm this is quite interesting, Please can you leave the info of your investment advisor here? I’m in dire need for one.
Merry Christmas to everyone
Thanks for the information. Question, is the 3k limit on capital loss limited to stocks or is that the overall limit you can claim for the calendar year? I have other investments (property) and wanted to know how claiming stock losses would impact other investments. Thanks again
You can use all your capital losses (beyond $3k) to offset your other capital gains (whether they be from the stock market, crypto, art, properties, etc). If you have more capital losses than capital gains, then you are capped at using $3K of capital losses to offset your non-capital gain income (such as wage income, interest income, dividend income, business income). I hope that helps!
This is the most clarified explanation video I’ve ever seen
This was great for us beginners. So clear and to the point. Thank you so much!
Thank you for clarification. Do these taxes apply the same way investing through an S-Corp entity? Is there any tax advantages or deductions in investing through an S-Corp entity?
Thank you for this thorough video! Can you explain the tax implications from investing in index funds or ETFs in taxable brokerage accounts please…and ways to reduce taxable gains in those accounts??
This is why your name will be remembered. Thank you Brian and Merry Christmas!
Thank you for all the support Blexaarron!
Brian, another good question. If I buy one share of Tesla in January and another in June but sell one share of Tesla, the following February. Will I pay short term or long-term capital gains tax?
Your example would be long term. Look up FIFO. That’s the first in first out method. As opposed to LIFO (last in first out).
Are any of the brokerage fees deductible? Are they considered part of the costs basis when you buy the stock? Are gambling/lottery losses part of the $3k per year limit?
Thank you for such an easy way of explaining it! Way easier process than I anticipated
I absolutely love how you explain this so well. I was wondering how the taxes work. Like one year you make money on the stock market and of course you pay with money earned. And then if you lose the following year, I was wondering how that worked. I love that we can at least take it off of our taxable income. At least that is fair so that you are not only paying taxes but you can actually claim the losses. So it all balances out. And if you have lots of losses, you can get those back over time. I'm a very new investor and trying to learn as much as I can before jumping in. Thanks so much.
Thank you for this great overview. I want try doing taxes on my own next year so I'll definitely be referencing this alot 😅
Awesome! And I hope this helps.
Will it apply if it same stock walmart
Ex walmart 1st purchase loss
Walmart 2nd purchase gain
If loss is more can we still claim the loss?
I took your advice and paid little throughout the whole year and started paying my fair share in this last quarter.....taxes....ugh!
If your Stock interest and dividends are set to automatically reinvest within the brokerage account, is that a taxable event, or do you only pay taxes when you withdraw from your account?
Taxable the year the dividends are paid out. IRS doesn't care if the dividends were reinvested.
When these funds are withdrawn there will be no tax?
This is the best video I have fount on this topic so far! Thank you!
Hi! This my first year playing the stocks! You said the mid February they gonna send out taxes. Are they gonna send to your house? If not how do I get it! Thank you for your help!
Do tax loss harvesting above 3k roll over next year into perpetuity?
Any losses over $3K continue to roll-forward until they’re used up. I had a client with $1M in losses… he’ll be using them for quite a while.
Great video, just discovered your channel and subscribed after listening to some your stock market videos which explain things very well. Thank you so much!
Thank you for this video. I finally understand this topic.
Glad it was helpful!
Awesome...Thank you. We will be waiting more new videos for Stock Market Taxes..
Do capital gains work the same for options as far as the tax rate is concerned?
If I buy some stocks then 6 months down the line. I buy more of the same stocks. In order to get the tax free. Do I have to only sell the stocks I bought before the second order, do it rollover into the first order?, or do I have to wait another year?
I am negative on stock this year. I am planning to sell that stock when it hits my buy price next year. I am not olanning to hold for 1 year. Since, my stock became positive in another year and compared to last year, there is gain. However my net gain in 0 because i didnot make money. Since, i sold in the next year and there is gain compared to last year, do i pay need to pay tax on that? Please advise
Very clear and informative. Great video, thank you!
Do you prepare taxes for day/options trader?
Can you make video on how dividends are taxed? and how tax would look like if you invest in dividend stock overtime over the year(s) and how the taxes work in those scenarios?
Thank you for this educational video. Regarding dividends, how are they taxed when they're "dripped" back into the stock?
They’re taxed when they DRIP back. It’s no different than receiving the dividend and you buying more of the stock. It’s a good question but it’s more of a convenience thing than a tax deferral thing.
Hello Brian and thank you for the nice video. Could you please answer me which is the amount of taxes in stocks for not US Citizens ? Thank you so much !
Amazing presentation man. You earned my Sub! Thank you!
Hi Brian do you have option class or program that i can learn from you like teaching from zoom?
Hi, I love your financial videos. Keep them coming . Couple of questions for you,
Q1: On the $3000 limit (loss) for taxable income deduction, if you are married and filing jointly, would the number go up?? if so how much??
Q2: If you re-invest the dividend on the same stock do you still pay taxes on the dividend for that year?
Thanks
@ClearValue Tax do these rules apply the same to crypto? In addition to switching between different crypto currencies?
Does the loss deduction apply to both itemized and standard deduction tax returns?
Yes, it's applicable to all tax returns regardless of whether you take the standard deduction or itemized deductions.
Is there any specific and cool software for myself tax preparing ?
Thank you so much for this video. It made things very clear.
If you switch brokerages (from Robinhood to Fidelity), does that affect your taxes?
No
Was wondering that myself. I switched from webull to Fedility.
No it does not but make sure your information (like cost basis) transfers properly from your old brokerage account.
Hi, how are we taxed when rolling options? If I sell a call option for $1 and then i buy back the call option for $5 and sell another call 2 weeks out for $6 all in the same day. Will i get taxed for $7 or the net of $2?
Very good video, thank you! For 2024 the 'no capital gains' limit is 47k of 'taxable income. Do stock sales, dividends and interest count as 'taxable income' or is that limited to wages etc? Thanks again!
Thank you Brian , would it be the same For Crypto? If not would you educate me on Crypto taxes?
Question. Once capital losses in stock market are carried over to next year can I use the 100% of loss to offset capital gain in stocks? Or it’s limited to 3k like it is on the wages?
Yes, you can use all the losses to offset other capital gains. If you have more losses than gains, then it’s restricted to $3K to offset against your other income.
Thank you! Appreciate your hard work and help!
Another amazing video! Thank you for all the info
GOD bless you 🙏
What about taxes for options trading? Do the same rules apply?
Thank you for your clarity. I will watch more videos by you.
Awesome video! Question: Do loss deductions counter dividends first or income first ?
Can i deduct losses from last year, but i gained this year?
Yes you can roatdw
You're the kind of person who, if I saw you succeeding, I would be very happy about it. Seems you're doing well with the channel!🎉
Is it how long you hold the stock from the first time you purchased and began to hold? Even if you bought more after than day?
Thanks for the video is AMAZING how simple you made this! Can you explain allowed and disallowed wash sales?
So would options be taxed the same way ? Just by the amount of money you made in it ?
Can you explain how deduct margin interest when you use margin from broker? 🎉
It's an itemized deduction on Schedule A.
Thank you for detail explanation. My question is related for international individuals who are living outside the us and trading us market such as Saudi in Saudi Arabia. Do they pay taxes on their gains or just high percentage on Dividends yields ?
It will be just on the dividends. BUT you can file a non-resident tax return and get a refund (a good amount of it in most cases).
Thank you so much for sharing your knowledge and making it very understandable. Would be interested in more advanced info on this subject.
Thanks for the explanation. Please advise about the loss carry over to next year (when bigger than $3000). Who keeps track of it?
I think the remaining carry over is always documented on your previous year’s tax form.
Broker and irs
That's a brilliant explanation, thank you very much 🙏
Awesome. Information that I needed! Thank you!
Thank you for the insight on Taxes. Can we carry forward Investment interest expenses to future years if we file as standard deduction?
Yes, they will carry forward behind the scenes in schedules that are not part of the tax forms that you file. It will be in your historical records within your software history (the worksheets).
“You went overboard, like you YOLOed” 😂😂😂😂😂 10:50
Hi Brian
If you lost 20k this year so can didact 3k and will have 17k on not used and next year make 17k can I use the previous year loss on this year profit?
Yes, in your example, you could use the full $17K of losses to offset your $17K of capital gains. The $3k loss limitation is only applicable if you have more capital losses than capital gains (to offset against other non-capital gain income - such as wage income, business income, interest income, dividend income, etc). I hope that helps!
Thanks for the information. I'm not interested in Taxes at all, but I think this is good to know for general investing.
Bro one of my top 5 teachers on the tube.thank you for all
Thank you for all the support 1bannahpoam!
Thank you for your videos man this clears up so much and its so easy to understand. 🙏
Happy to help! And thank you for the support!
Very clear explanation of this subject.
When does the start date take place? From when you bought the first stock or the date of the last stock purchase?
Is this information the same if you only trade Stock Options?
Hi Brian. Thanks for this helpful video. With regard to the 1099-INT, if some interest is only taxed at the federal level (T-Bill interest) and some is taxed at all three levels (fed., State, local) will the 1099-INT separate out the the two types of interest interest for you or do you have to do that yourself via checking your brokerage account history of interest gained over the year? Thank you.
Do you have to pay taxes for interest and dividends generated from investments within an IRA or 401K? (Assuming i am not yet taking any distributions from any of those account).
No you will not🙂
Thank you for this best 16min informational video!
You're very welcome! And thank you for the support!
Is this the same for cryptocurrency taxes?
Thanks for simple explanation. I didnt know loss deduction carry to next year.
How about dividends that i get paid on my Roth IRA?
Loses are only reported and able to be used when your position closes. Correct?
Om stocks and crypto.
Can you also explain this for options traders?
Very helpful information for me as I am beginning my stock market investment journey.
Please explain how Return of Capital will be treated for synthetic covered called High yielding ETF ? Thank you for your time.
Hi Brian, you mentioned about federal Long term and short term taxes. How about state taxes? If I live in California? If I live in Nevada? Please explain . Thank you
Does this apply to to retirement accounts like IRA’s or 401k’s? To my understanding all the income is simply tax deferred until you physically remove it.
This does not apply to money invested within a retirement account.
@@clearvaluetax9382 Thanks!