4.3. Taxation of Equity and Debt

A customer’s tax rate can be critical in evaluating a customer’s portfolio and making suitable recommendations for her. In this section, we will summarize pertinent tax rules and good practices.

When a customer sells securities, there are tax consequences. The consequences that arise depend primarily on the kinds of securities that were purchased and the length of time they were held. When a customer sells a corporate security, the customer can realize either a gain if the security appreciated in val