We’re FLAT! Plus, paying taxes on capital gains and dividends
Welcome to week 8. It is midday on December 11, 2020 and the Robinhood account is up to $118.05, just a few cents from midday last week.
As the year is coming to an end, this is my friendly reminder that you have to pay taxes on any capital gains and dividends that you received this year. Robinhood is an open brokerage company and they do not offer trading indies any tax-advantaged accounts, like IRAs, ROTH IRAs, or 401ks that I know of. Basically, if you sold the stock for more than what you paid for it, it is a capital gain.
I describe briefly what a dividend payment is as well.
Join me next week as we discuss short-term and long-term gains and taxes that you might owe!