Investment Taxes
If you get your profits from investments
that pay dividends, the dividends are taxable. If the dividends received are from a qualified retirement plan and have a dividend reinvestment plan, then you may be able to avoid paying some tax.
You can take a capital gains loss in the same year you’ve had a gain which would help offset it. But you can’t sell stock in a losing position to offset capital gains and then turn around and buy it right back. The IRS Wash Rule prevents investors from doing this. This rule says that you can’t sell a stock and buy it back within 30 days and claim a capital loss.