Sold Tesla Stock in 2020? It Could Impact Your Tax Bracket
While many were stockpiling toilet paper as the pandemic escalated, others were adding more shares of Tesla (NASDAQ: TSLA) stock to their portfolio, waking up to triple-digit gains this summer that seemed too good to be true. The electric car maker announced a five-for-one stock split and the stock jumped 74.2% in August alone. Tesla's meteoric rise left many investors with a tough decision: should I sell, buy more, or hold?
If the temptation of cashing in on quick profits caused you to sell shares of Tesla in a standard (taxable) brokerage account, the capital gains could impact your tax returns. Taxes are probably the last thing on your mind when you're winning big in the stock market. But all investors should know this to maintain their sanity: selling stock is a taxable event. This additional income -- although unearned -- could easily put you in a higher tax bracket due to capital gains taxes.
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Source Fool.com
