- Selling shares for a profit is akin to a mini jackpot in the stock market.
- Capital gains tax is due on profits, affecting the net gain.
- Profits from shares held over a year may be taxed at a lower long-term capital gains rate, offering a “patience pays off” discount.
- Profits from shares sold within a year could be taxed at the same rate as ordinary income, prompting strategic sell date planning.
- Tax rates and rules vary, so consulting a tax advisor is crucial to navigate the financial landscape and maximize earnings.