For anyone who buys and sells stocks, mutual funds or stock options, this book makes it easy to understand the tax rules — and the best strategies for minimizing taxes. In plain language it covers all of the following. Buying and selling stocks: complete coverage of relevant tax provisions, including the capital loss limitation, how to identify shares and the wash sale rule. Mutual fund investments: how and when to use the averaging rules for sales of mutual fund shares, and a guide to all the categories of mutual fund dividends. Rules for advanced investors: clear explanation of tax rules for short sales, stock options and "straddles." Tax treatment of traders: find out if your buying and selling activity qualifies you as a trader — and if so, how that will affect your taxes.
This isn't an all-purpose book on taxation of investments. You won't learn about Roth IRAs or variable annuities or even the rules for reporting interest from government bonds. The goal is to do one thing well: explain how people who buy and sell stocks, mutual funds and stock options can handle their taxes correctly and efficiently.
