Are you overpaying on stock gains? 1 simple switch could mean paying lower taxes when selling (or none at all)

Group 1 - The IRS taxes investment income, including interest from bonds and dividends from stocks, similar to wages [1][2] - Selling an investment at a higher price than the purchase price incurs a capital gains tax, which is calculated based on the difference between the selling price and the initial investment [2] - Capital gains are categorized into short-term and long-term, with short-term gains taxed at ordinary income rates and long-term gains taxed at lower rates [3][4] Group 2 - Long-term capital gains apply to investments held for more than one year, while short-term gains apply to those held for one year or less [3][4] - In 2025, the tax rates for long-term capital gains are 0%, 15%, or 20%, depending on filing status and taxable income, while short-term gains are taxed at rates ranging from 10% to 37% [5] - Gains in regular brokerage accounts are taxed annually, whereas gains in traditional IRAs or 401(k)s are tax-deferred, and gains in Roth IRAs or 401(k)s are tax-free [6]