Only when your cost basis falls to $ 0 will returns of capital be taxed, but they're taxed at capital gains tax rates. (thecollegeinvestor.com)
For example, if you sold one stock for a $ 10,000 profit this year and sold another at a $ 4,000 loss, you'll be taxed on capital gains of $ 6,000. (nerdwallet.com)
He will also consider a lower rate of capital gains tax for long - term investors. (theguardian.com)