This Little-Known Tax Plan Takes Aim at Your Trading Account
- Minimizing capital gains will become tougher under Senate plan
- Brokers are in a frenzy urging clients to ‘sell, sell, sell’
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Making money in the stock market could get more expensive.
The U.S. tax overhaul may severely limit investors’ ability to minimize capital gains on stock -- driving up the taxes they’d owe if the Senate gets its way. That chamber’s version of the bill mandates investors with taxable brokerage accounts sell shares they’ve owned the longest first, a method known as “first-in, first-out,” or “FIFO.”