Stock Market Taxes For Beginners | The Ultimate Guide

[@DannySully]

What did you find interesting from this video? - Enjoy! Stock Market Investing KZbin Playlist: kzbin.info/aero/PLL80XtVsEZjNEqjqxToAzGHSwvPpWFaD6 📈 Get $60+ Free Stock on Webull: dannysully.link/Webull

[@jenniferbmendezful]

Raises some questions on the wash rule with index funds?

[@herothinker4846]

The issue with an HSA is that you need a high deductible health plan to qualify.

[@DannySully]

Correct. But for that that can take advantage of it, should.

[@appleztooranges]

Yeah I am not doing it. Rather Roth IRA

[@moiselj19]

Always a pleasure listening to you🏆

[@DannySully]

Thank you so much!! I really appreciate your support ❤️

[@moiselj19]

@@DannySully thanks to you I have my Roth Ira set up and my individual account. I used your advice on how to set up everything with Fidelity

[@markjohntano2034]

Hello, I live in hong kong what broker account you recommend?

[@The_IN_Famous_ElGuapo_714]

I know this is a dumb question but I'll ask anyway. Does making certain types of large purchases offset capital gains? Let's say for example, you throw most of your savings into a stock, and after several months it goes on a massive run. You decide to sell, but are now going to pay ST Capital Gains tax. However, in the same year you used all those gains to put a huge down payment on a house. Does that downpayment help to reduce your taxable income in any way?

[@DannySully]

Hey great question. If it is solely as a downpayment for a house then I don't think so. It would have to be something that can offset it such as other capital losses, donations, or certain retirement contributions. Hope this helps!

[@The_IN_Famous_ElGuapo_714]

@@DannySully yes, that was what I thought. Thanks for such a quick response and great video!!

[@DannySully]

Of course. And I appreciate you very much, thank you!

[@brendanroy452]

Thank you, very helpful. Just started investing in ETFs with fidelity last month. Needed to know how this works.

[@DannySully]

Thank you! I’m really glad to hear it is helping :)

[@cristiandominguez2792]

Does this apply to etfs in a brokerage account? What if i continuously buy throughout the year what would be the date for long term capital gains and what if i keep buying and holding onto it for 20-30 years?

[@DannySully]

ETFs are much more tax efficient than mutual funds. For brokerage accounts, you will want to use ETFs. The structure is the same for capital gains/losses until you sell, but there is still a chance taxes can be triggered based on the funds management so I can not say absolute no to you. Index ETFs are the most tax efficient way to invest in a index fund in a typical brokerage account. I hope this helps!

[@DannySully]

But yes, for the long term capital gains, this is the same and must be longer than one year.

[@jenniferbmendezful]

So, say I sell QQQ an ETF (with many stocks) not A stock technically, but then within 30 days I buy QQQM, the only difference is the expense ratio. Still Nasdaq-100. Has court precedent been set. How about selling losing VOO (S&P500 index) and buying back SPY (S&P 500 index) within 30 days. Is the wash rule in effect? Since it is not a single stock, but an ETF?

[@DannySully]

If you sell a security at a loss and buy the same or a substantially identical security within 30 calendar days before or after the sale, you won't be able to take a loss for that security on your current-year tax return. Because the ones you have mentioned are identical besides minor differences like the expense ratio, It is likely you could have an issue by doing this. I can't guarantee it for you, but based on my research it seems this could cause conflict since the comparisons track the same indexes (Ex: VOO/SPY track S&P500). I hope this helps! Thanks for watching my content as well :)

[@pastrocks85]

i have been trying to find out how to start investing in stocks, i was most worried about incurring taxes. I tried to google it, and was even more confused. So basically I can open up a brokerage account, invest in the S&P 500 and not worries about taxes until i sell (mostly likely not) my positions? But also expect to be taxed on dividends and interest come tax season.

[@DannySully]

Hey great question! In regards to purchasing index funds, getting an ETF through a brokerage account will be more tax efficient for you (compared to index mutual funds). For example, VOO instead of VFIAX. All in all, with an index ETF like the SP500, it is rare that any capital gains/losses would be triggered at all until you sell. BUT, you have to understand that dividend income from the fund will still be taxed. If you hold long term the dividends will become qualified, which depending on your tax bracket (under 47k/yr income is 0%). That is why with typical brokerage accounts, long term investing with qualified dividends is a great choice and sounds like it is the approach you are taking. Personally, I would not be worried about taxes for this, especially with an Index ETF (Ex: VOO, SPY, etc.) Just understand the dividend income structure, which I mention more toward the middle to end of the video. With brokerage accounts, definitely go for the qualified dividend investment options. Hope this clears things up for you! Let me know if you have further questions. Thanks for watching my content!

[@pastrocks85]

@@DannySully thanks so much for the information. I'm about to max out my ROTH for 2024, so i wanted to start investing more of my money. I'm using Fidelity if that makes any difference.

[@DannySully]

Of course! And that’s great! 💪