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Tax planning for stock portfolios offers significant wealth-building opportunities when approached strategically. We dive deep into how different types of portfolio income are taxed and explore advanced strategies to minimize tax impact while maximizing growth potential.

• Understanding the difference between portfolio income (stocks, dividends, capital gains) and passive income (real estate)
• Short-term capital gains are taxed at ordinary income rates up to 37% plus potential 3.8% net investment income tax
• Long-term capital gains receive preferential tax rates (0%, 15%, 20%) depending on income brackets
• Qualified dividends receive the same favorable tax treatment as long-term capital gains
• First $47,000 of long-term capital gains ($94,050 if married filing jointly) can be completely tax-free
• Capital losses can offset capital gains from any source, with excess losses offsetting ordinary income up to $3,000 per year
• Tax-deferred accounts like 401(k)s eventually tax all withdrawals at ordinary income rates, not capital gains rates
• Strategic timing of capital gains can dramatically reduce tax liability
• Using ordinary business losses to offset capital gains from portfolio liquidations
• Qualified Opportunity Zones can defer, reduce, and potentially eliminate taxes on capital gains
• Utilizing tax-free vehicles like Roth IRAs and borrowing against appreciated stock positions
• Taking advantage of years with low income to realize gains at 0% tax rate

To learn more about implementing these strategies for your specific situation, visit prosperLCPA.com/apply or taxplanningchecklist.com to get on our list and be invited to free educational events.