Are You Losing 37% of Your Stock Gains by Making This Common Mistake?
When you're trying to make money in the stock market, it's tempting to focus on scoring those big returns and worrying about the tax bill later. But taxes can eat away a huge chunk of your returns, especially if you're a frequent trader. Read on to learn about the mistake that could cost you up to 37% of your returns.
When you sell a stock you've held for one year or less, any profit is considered a short-term capital gain, which is taxed as ordinary income. This means you could pay up to 37% of your returns in taxes, depending on your income bracket.
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Source Fool.com
