Question:
❓You sell an investment for a $50,000 gain.
Which of these could increase how much you owe in taxes?
A) Holding the investment for less than a year
B) Selling it in a year you have high income
C) Not planning for state taxes
D) All of the above
Answer:
✅ D) All of the above
Here’s why:
Gains on investments held less than a year are taxed as ordinary income (often higher).
Higher income can bump you into a higher tax bracket, increasing the rate on your gains.
And yep—state taxes can take a bite too, depending on where you live.
Selling is easy.
Planning before you sell is the hard (and smart) part.
