Did you trade meme stocks last year? It could affect your taxes

The video discusses the dramatic rise and fall of GameStop's stock price in 2021, highlighting the tax implications of selling stocks. It explains the difference between long-term and short-term capital gains taxes, emphasizing the importance of holding stocks for over a year to benefit from lower tax rates. The video also covers how selling stocks can impact your income, tax bracket, and eligibility for certain deductions or credits. It advises consulting a tax advisor to understand the full consequences of stock transactions.

What was the peak price of GameStop's stock in January 2021?

• $20

• $500

• $350

• $100

What determines the tax rate on capital gains from stock sales?

• The stock's trading volume

• The stock's original purchase price

• The duration the stock was held

• The stock's market sector

How are short-term capital gains taxed compared to long-term gains?

• At a higher rate

• Not taxed at all

• At a lower rate

• At the same rate

What could happen to your tax bracket if you sell a large number of shares?

• It could decrease

• It could remain the same

• It could increase

• It could be eliminated

What is a potential benefit of selling stocks at a loss?

• Increasing your tax bracket

• Reducing your taxes elsewhere

• Eliminating all taxes

• Doubling your income