Tax Sux

 Tax Sux

https://amgreatness.com/2020/09/29/tax-sux/

Excerpt: ...(Y)ou cannot determine the character of a tax filer by looking at a tax return. There are two kinds of income under the tax code, ordinary income and capital gains. Most of us are familiar with ordinary income. We make wages. The government takes them. Capital gain is income that comes from the sale or other “realization” of assets. Gain is the difference between what one paid for the asset versus what one got when it was sold or “realized.” As day traders know, income from short-term gains on buying and selling assets, such as stocks, is treated as ordinary income. Income from gains on buying and selling assets held for more than one year is treated as long-term capital gains. Now, suppose there are two people, A and B. A has a good job making $120,000 a year. A’s friend, B, owns real estate. [There’s no easy way to excerpt this because the reader needs to follow every step or it doesn’t make sense. Now, I can see why serious investors hire accountants. It's not a game to play on your own. If you’d like to understand the process, this article will give you an overview. Ron P.]