Pay Taxes Like A Millionaire

“Buffett says he’s still paying lower tax rate than his secretary”

It is a common practice that you will pay taxes for anything you sell above its purchase price; you pay taxes on your profit or gains.

This type of tax is called: Capital Gains Tax

Capital Gains Tax:

This is charged on non-inventory assets. For the majority of people, this means, assets such as bonds, stocks, property and related investments.

Every time you have a capital gain, they are taxed at two rates, all depending on how long you owned this asset for. The longer the asset is held, the less taxes you pay, but for how long is it held to pay less tax?

Short-term: assets held less than 12 months

Long-term: assets held over 12 months

Below is the tax bracket for 2015: Continue reading