Series 82: Tax Consequences Of Securities Transactions

Tax Consequences of Securities Transactions

A customer’s tax rate can be critical in evaluating a customer’s portfolio and making suitable recommendations. In this section, we will summarize pertinent tax rules and good practices.

When a customer sells securities, there are tax consequences. The consequences that arise depend primarily on the kinds of securities that were purchased and the length of time that they were held. When a customer sells a corporate security, the customer can realize either a gain if the security appr