Investment Tax Guide

Investment Tax Resources:
Your Complete Guide to Tax-Smart Strategies

Understanding how taxes impact your investments can be challenging. This resource hub brings together helpful articles on topics like cost basis, tax-loss harvesting, and tax-efficient investing. Whether you’re looking for ways to lower your tax bill or just want to learn the basics, these resources can help.

Terms to know:

Asset allocation

The strategy of dividing investments among different asset classes (e.g. stocks, bonds, etc.) to help manage risk.

Learn more: Asset Allocation by Age: 20s and 30s, 40s and 50s, 60s

Budget

A plan for managing income and expenses to meet financial goals.

Learn more: How to Make a Budget in 5 Steps

Credit score

A numerical representation of your creditworthiness, based on your credit history.

Learn more: How To Check Your Credit Score for Free

Debt-to-income ratio

A measure of how much of your income goes toward paying debts, which is used to assess financial health.

Learn more: Why Your Debt to Income Ratio Matters

Emergency fund

Savings set aside for unexpected expenses or financial emergencies.

Learn more: How to Build an Emergency Fund in 6 Steps

Estate planning

The process of arranging how your assets will be distributed after your death, including wills and trusts.

Learn more: Does Everyone Need an Estate Plan?

Net worth

The total value of your assets minus your liabilities, indicating overall financial health.

Learn more: How to Calculate Your Net Worth

Basics of investment taxes.

Investment taxes can be confusing, but understanding the basics can help. These articles cover key topics like cost basis, capital gains, and taxable accounts to give you a solid foundation.

“Retirement plans are tax-advantaged, meaning that you won’t pay capital gains taxes as the money grows. This is the primary benefit of using a retirement account to invest in your 20s, 30s, or at any age.”

 Brian Walsh, professional CFP® at SoFi

Tax-advantaged investment accounts.

Some investment accounts offer tax benefits that can help you save more over time. These articles explain different types of tax-advantaged accounts and how they work.

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Tax strategies for investors.

There are ways to reduce the taxes you owe on your investments. These articles cover strategies like tax-loss harvesting and tax-efficient investing to help you keep more of your returns.

“Not all investment types generate the same type of taxation. When deploying a tax-efficient investment strategy, it’s crucial to know how an investment is going to be taxed.”

 Brian Walsh, professional CFP® at SoFi

Taxes on different investment types.

Different types of investments are taxed in different ways. These articles break down how mutual funds, dividends, and ETFs are taxed so you know what to expect.