When you’re ready to sell a stock, bond or funds (like those you own with Acorns), you’ll likely have to pay taxes on any profit you made from the sale. If you’ve owned it less than a year, you’ll pay what’s called short-term capital gains tax, which is equivalent to ordinary income tax. But if you wait more than a year before you sell an investment for a gain, you’ll pay long-term capital gains tax, which is usually lower—another reason to hold onto your investments. Taxes may also be owed on ordinary dividends, qualified dividends and distributions. Tax rates for these will vary, and you should consult your tax advisor about your individual situation.
Published by IPS Accounting Services & Consulting
I was born in Cuba and came to the US at the age of nine during the 1980 Mariel Exodus. After twenty five years of a successful career in Managerial Accounting for private and corporate sectors. At the age of 45 and empty nester I felt my life needed a bigger purpose. Accounting has been my lifelong journey and I wanted the opportunity to help business reach their optimal growth. In addition to being a devoted mother and wife I’m very involved in my community and volunteer much of my time to advocating for righteous causes. I’m devoted to the women’s movement as well as keeping our Hispanic roots and culture alive. View more posts