DIVIDENDS AND TAX
How do you manage your tax liabilites through the year?
"Hey everyone, I do around 200 buy/sell trades a year, and over the past two years I've ended up with two $30K tax bills from trading, which really caught me off guard. I usually don't think about taxes when I sell a share—that’s been my downfall. I'm curious how you all handle your tax situation throughout the year, aside from just timing your sales for tax benefits. Some folks say, ""if you're paying tax, you're making money,"" but that's not really my point. I'm considering estimating my tax bill and setting aside some cash during the year, but then that money isn't available for trading. What do you all do to manage your tax liability during the year? Thanks!"
Liam Thompson.
25 February 2025
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