An Apple A Day

Well, well, well, Apple hit a major milestone this week as it became the first company to a reach $3 trillion market cap. I saw plenty of folks super excited because they invested in Apple early. I was happy for them. I love to see so many people learning and succeeding in the stock market. Yes, I know, Apple is one of those obvious stocks - but obvious or not, a win is a win and here at Lessington Law, we love to see it.

If you are a long term holder of AAPL stock (more than 1 year), or any stock for that matter, and you decide to sell, you will recognize what is known as CAPITAL GAIN. We love capital gain. Capital gain is taxed at a lower rate than earned income. Passive income is the best of both worlds - it's money that worked for itself and it is taxed at a lower rate so more of it ends up in your pocket.

The stock market is great for people who are willing to play the long game. Tesla stock has actually changed some people's lives. Can you imagine?!?! The thing about the stock market is you need to be honest about your risk appetite and never risk what you cannot afford to lose. If you dare to venture into the stock market, it's best to stick to established platforms and or pay a professional (depending on how much money you are looking to invest).

If you have sold any stock during 2020, you will be receiving tax forms (Form 1099-B) showing either your gain or loss. Be sure to take that to your accountant or tax professional, to ensure your capital gain/loss is reported accurately. If you should find that you are in a dispute with a federal or state/local taxing authority, do not hesitate to contact Lessington Law to assist you with your tax controversy.

This blog is for general information and education purposes only.

It is not offered as legal advice or legal opinion.

To the extent this message contains tax advice, the U.S. Treasury Department requires us to inform you that any advice in this letter is not intended or written by our firm to be used, and cannot be used by any taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code. Advice from our firm relating to Federal tax matters may not be used in promoting, marketing or recommending any entity, investment plan or arrangement to any taxpayer.