Topic
Stocks and funds that change hands as a gift or an inheritance are taxed very differently from ones you buy and sell yourself. This explainer covers carryover basis for gifts, the step-up in basis at death, holding periods, the gift tax filing rules and the details that trip people up.
Investment income such as capital gains, dividends and interest is not subject to paycheck withholding, so large amounts can leave you owing tax and a penalty at filing time. This guide explains who must make estimated payments, how the IRS safe harbors work, and the main ways to pay.
Cost basis decides how much of a sale is taxable gain, yet many investors never check the number their broker reports. This explainer covers how basis is calculated, the lot-selection methods, covered versus noncovered shares, and the adjustments for reinvested dividends, wash sales, gifts and inheritances.
Markets move, and over time they push a portfolio away from the mix of stocks, bonds and cash it was built around. Rebalancing brings it back. This guide explains why investors rebalance, the main methods, how often people do it, and how to limit taxes and trading costs along the way.
