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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Murse on July 04, 2016, 07:07:06 AM

Title: Capital gains in taxable account/state taxes
Post by: Murse on July 04, 2016, 07:07:06 AM
I live in the lovely state of Oregon, my question is I have filled up all of my tax advantaged accounts and I have started investing in a taxable. I looked up the tax rates, will be 15% federal and 9.0% state. This seems awfully high, am I correct that if I leave it in all that will be taxed at this rate is dividends?

My concern here is that I am investing this money knowing that it will likely be a down payment on a house/investment property someday. It would just be sad to see 1/4 of my "profit" go to the tax man.

I guess my only other option is to stick it in my bank, but realistically that option would do more harm then good.
Title: Re: Capital gains in taxable account/state taxes
Post by: jwright on July 05, 2016, 07:55:54 AM
You have to realize the capital gain before it is taxed.  If you keep the assets in a taxable account and the appreciate, you have unrealized gains, you don't pay tax on the appreciation.   You will pay the tax in the year the asset is sold at a gain.  You can also deduct losses up to $3,000 per year when you sell at a loss.