Wash Sales, Capital Gains, State Taxes: Tax Traps Investors Need to Avoid

Investors also need to beware of rules about taxes on mutual fund dividends, mutual fund investments and net investment income.

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You may know the basics of investing in stocks, bonds and mutual funds but what about the many hidden tax traps that lie in wait for unwary investors? According to Howard Hook, CPA and certified financial planner at EKS Associates in Princeton, N.J., the biggest tax mistake investors make is not knowing these tax land mines even exist. Every dollar lost needlessly to taxes from one of these traps is money you won’t get back, says Hook. 

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Joy Taylor
Editor, The Kiplinger Tax Letter

Joy is an experienced CPA and tax attorney with an L.L.M. in Taxation from New York University School of Law. After many years working for big law and accounting firms, Joy saw the light and now puts her education, legal experience and in-depth knowledge of federal tax law to use writing for Kiplinger. She writes and edits The Kiplinger Tax Letter and contributes federal tax and retirement stories to kiplinger.com and Kiplinger’s Retirement Report. Her articles have been picked up by the Washington Post and other media outlets. Joy has also appeared as a tax expert in newspapers, on television and on radio discussing federal tax developments.