Video instructions and help with filling out and completing Will Form 8815 Taxing

Instructions and Help about Will Form 8815 Taxing

So you made some money on stocks this year congratulations well now you need to be taxed on the money you made so today I'm going to give you guys the six biggest points on taxing that every single stock market investor should know I cannot wait to share this with you guys today good day subscribers thank you so much for joining me today I am Jeremy this is the financial education Channel and today we're talking about the basics on being taxed when you're a stock market investor so it's the type of things that every single beginner in the stock market should understand anybody that's thinking about investing in the stock market then when you can plan out your investments accordingly on what you buy stock which you sell stocks what's the best investments for you all those kinds of things because the tax rates are different for different things and it's very important to understand that that way you can plan accordingly guys so we're going to go over the six biggest things leave this video today a thumbs up if you really enjoy it so number one thing we're talking about is dividends and how dividends are taxed so the majority of people will be taxed on dividends at a fifteen percent tax rate a fifteen percent tax rate that's most people know you're super high income I believe it's four hundred thousand dollars or more you'll be taxed at 20% we're regardless the dividend tax is generally going to be way less than what you're paying as a normal tax person I know me personally I think I'm in the around the twenty eight percent tax bracket I'll be in for this year so paying fifteen percent on dividends is a heck of a lot less than twenty eight percent which is what I would normally be taxed at so it's a big advantage to being basically invested in dividend stocks and stocks that pay you dividends because basically you're taxed way less than you would be if you were actually making that money yourself and things like that guys it's another way you know the tax we talked about on the Rich Dad Poor Dad book the other day I talked about how you know if you're you're an investor or you're a big business owner the tax rules really are to your advantage if you're a small business owner or just an employee the tax rules are really against you this is another reason why being an investor is a great thing because you're taxed a lot less guys that's awesome that's number one dividends are taxed at 15% for most people I you know income people are taxed at 20% number two if you held a stock for more than our excuse me for less than a year and sold it for a profit then you are going to be taxed at your normal income rate so like I said I'm the like our twenty eight percent tax bracket right so if I'm selling stock you know when I make a one dollar profit I'm going to be taxed on that stock at a twenty eight percent because it's basically they got to go under normal income because it's capital gains held for less than a year now the difference is that goes into point number three if you held a stock for more than a year and in sold that stock you'll be taxed at either that 15 percent or 20 percent depending on your income so I'm much less rate so you can say okay Jeremy you you bought one share in a company you made a one dollar profit okay I made a one dollar profit so if I sold that stock after I held it for only 360 days of things then I had I'm going to be taxed at my 28 percent tax bracket so I'm going to pay 28 cents and taxes but if I would have just held that stock for the state 378 so just barely more than a year I'm going to be taxed at a 15 percent extract it's only 15 cents you say well you know that's not that much money well think about it on this way think about it I made a hundred thousand dollars profit that year now we're talking big numbers because now if I held this stock for only 360 days then I have to pay a twenty eight thousand dollar tax on that twenty eight thousand dollars whereas if I held it for three hundred seventy days only ten days more just barely more than a year I go ahead and pay only fifteen thousand dollars in tax so we're talking about thirteen thousand dollars difference there guys so the numbers really add up and then you can say okay and then the compounding effect you know the extra thirteen thousand dollars then invested next year and you get a certain return and the next year and the compounding effect over decades is massive massive so this is what you really did another reason why I believe in long term you know I have a million other reasons why I'm a long-term investor but also because the tax you get a huge tax advantage versus being someone that's a short-term trader or something and they have to pay the normal tax rate on that guy so you know and it's never mind if you're someone that makes a lot of money your texts around a 40% tax bracket you know that way high income one mezzanine Texas forty percent on a stock game versus being taxed for the fifteen percent you know and we're talking hundreds of thousand dollars of profit it's not millions of dollars in profits huge huge differences there guys so you've got to understand that it's just another reason that I'm a long-term investor guys so it doesn't point