Tips to Reduce Your Capital Gains Tax Burden

CAPITAL GAINSTAX BURDEN

TIPS TO REDUCE YOUR

Have you made money on the sale of an investment or real estate?

That is, were you able to sell a capital asset for more than its purchase price or its value when you acquired it?

You may need to pay capital gains taxes on any gain realized through the sale.

Capital gains are classi�ed as short-term or long-term.

Short-term capital gains tax:

Long-term capital gains tax:

May be owed if you owned the asset for one year or less prior to selling it.

May be owed if you owned the asset for more than one year prior to selling it.

Consider holding capital assets for longer than a year if long-term capital gains tax rates are lower than short-term ones.

TIP:

TIP:If you’re holding a capital asset that has lost value and is unlikely to recover from the loss in value, consider selling it at a loss to offset capital gains on other assets.

Donate securities that have gained over time instead of donating money, and potentially take a tax deduction for the full market value.

TIP:

May be owed if you owned the asset for one year or less prior to selling it.

May be owed if you owned the asset for more than one year prior to selling it.

TIP:Work with your tax professional to make the best choice for your situation.

© 2014 Regions Bank

This information is general in nature and is provided for educational purposes only. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. Information provided should not be relied on or interpreted as accounting, �nancial planning, investment, legal, or tax advice. Regions encourages you to consult a professional for advice applicable to your speci�c situation.