This document provides tips to reduce capital gains tax burden. It explains that capital gains are classified as short-term or long-term depending on how long an asset was held. Short-term gains apply to assets held one year or less while long-term rates are usually lower for assets held over one year. It recommends holding assets longer to qualify for lower long-term rates, selling losing assets to offset gains, donating appreciated securities for tax deductions, and working with a tax professional.

1. TIPS TO REDUCE YOUR
CAPITAL GAINS
TAX BURDEN

2. Have you made money on
the sale of an investment
or real estate?

3. That is, were you able to
sell a capital asset for
more than its purchase
price or its value when
you acquired it?

4. You may need to pay capital
gains taxes on any gain
realized through the sale.

5. Capital gains are classied
as short-term or long-term.

6. Short-term capital gains tax:
May be owed if you owned the asset for
one year or less prior to selling it.
Long-term capital gains tax:
May be owed if you owned the asset for
more than one year prior to selling it.

7. Consider holding capital
TIP:
assets for longer than a year if
long-term capital gains tax rates
are lower than short-term ones.

8. TIP:
If you’re holding a capital
asset that has lost value
and is unlikely to recover
from the loss in value,
consider selling it at a loss
to offset capital gains on
other assets.

9. TIP:
Donate securities that
have gained over time
instead of donating
money, and potentially
take a tax deduction for
the full market value.

10. TIP:
Work with your tax
professional to make
the best choice for your
situation.

11. © 2014 Regions Bank
This information is general in nature and is provided for educational purposes only.
Regions makes no representations as to the accuracy, completeness, timeliness,
suitability, or validity of any information presented. Information provided should not
be relied on or interpreted as accounting, nancial planning, investment, legal, or
tax advice. Regions encourages you to consult a professional for advice applicable
to your specic situation.