Will I have to pay tax on the sale of my investment?

Determining the tax impact of selling an investment can sometimes be complicated. There are several questions to ask a client to ensure that the tax liability on the sale of an investment is calculated correctly.

To help make this analysis with clients easier, we have created the “Will I Have To Pay Tax On The Sale Of My Investment?” flowchart. It addresses some of the most common issues that arise for a client trying to understand the tax impact of selling an investment. This flowchart considers the following:

• Capital gain versus capital loss

• Long-term versus short-term status

• Tax brackets and applicable rates

• Medicare Surtax calculation