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4 Ways to Limit Taxes on Stock Gains and Dividends

4 Ways to Limit Taxes on Stock Gains and Dividends

You may not pay much attention to taxes within your brokerage account, as these costs are often hidden -- rarely does a broker have any line item for accrued tax or projected tax due. This makes it all the more important to know the major tax triggers within your investment accounts to avoid disaster come tax time. Any time you buy a stock and sell it for a profit within a year or less, you'll have a short-term capital gain (STCG) that's taxed as ordinary income.