Tuesday, February 09, 2010
Stocks, mutual funds, and exchange traded funds (ETFs) bought and sold outside of qualified accounts (i.e. IRAs, 401Ks, etc.) may trigger capital gains taxes.
Many people are more familiar with paying taxes based on w-2's from their regular jobs. The concepts of calculating a cost basis and figuring out capital gains or losses are a bit confusing.
My own father had trouble in this area a couple of years ago. Luckily, the IRS agent was very helpful and patient with him.
I have created a free ebook which provides basic information about capital gains and taxes for traders and investors (with the understanding that I am not a financial planner or accountant - this is just information, not advice).
You can download it from this link http://www.box.net/shared/9did0qmmqz