Tax Enough Blog

Watching your stock portfolio grow is exciting. Logging in to see those green numbers climb is a feeling every investor loves. Watching a chunk of those hard-earned gains disappear to taxes? Not so much. If you're a stock investor in the U.S., capital gains tax is a fact of life. But it doesn’t have to be a source of dread. While "avoiding" it completely is rare, you have a surprising amount of control over minimizing how much you owe. This guide will walk you through proven, legal strategies to reduce your capital gains tax bill. Let's dive in and keep more of your money working for you.

So, you're a savvy U.S. investor. You diligently research stocks, time your trades (or try to!), and aim for those sweet capital gains. But when it comes time to report those gains (or, sometimes, losses), things can get a bit more complicated than just "buy price vs. sell price." Especially if you've bought shares of the same stock at different times and prices. Did you know *how* your gains are calculated could be as important as the gains themselves when it comes to your tax bill? This is where **tax lot accounting** steps into the spotlight.

So, you're an investor navigating the exciting (and sometimes head-scratching) world of the U.S. stock market. You're making moves, tracking gains, and hopefully, seeing your portfolio grow. But what about those investments that... well, don't quite go as planned?

Ever sold a stock at a loss and immediately thought, "Ouch, maybe I should buy it right back while it's low?" Or perhaps you've heard savvy investors talking about "tax-loss harvesting" as a smart way to lower their tax bill? It sounds great, but there’s a potential speed bump hidden in the US tax code you need to know about: the Wash Sale Rule.

When you sell an investment for more than you paid for it, you realize a capital gain. But not all capital gains are taxed the same way. In the U.S., the amount of tax you owe depends heavily on how long you held the investment before selling it.

Learn how to calculate your capital gains tax in the U.S. easily. Understand short-term vs. long-term gains and estimate your tax liability with confidence.