Ordinary Income vs Capital Gains
Understanding the difference between ordinary income vs capital gains is essential for effective tax planning. The way your earnings are classified can significantly impact how much you keep after taxes. At Mike Garcia Financial, we help you make informed decisions so you can maximize your after-tax returns.
Why It Matters?
Ordinary income, such as wages, salaries, and interest, is typically taxed at higher rates than capital gains, which come from selling investments like stocks or real estate. Knowing how your income is taxed allows you to plan smarter and take advantage of tax-efficient strategies.
Clarifying Income Types
We explain the differences between ordinary income and capital gains, so you know how your earnings are taxed.
Identifying Tax Opportunities
We help you structure your investments and withdrawals to take advantage of lower capital gains rates where possible.
Integrating With Your Plan
We ensure your tax strategy fits seamlessly with your overall financial goals.
Ongoing
Review
We monitor changes in tax laws and update your plan as needed.
How It Works
1
Meet with us to review your income sources and investment strategy.
2
We design a strategy to help you keep more of what you earn.
3
We help you put your plan into action and keep it current as your situation changes.
Smart tax planning can help you grow and preserve your wealth for the future.