Taxable Event

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Dictionary Says

Definition of 'Taxable Event'

Any event or transaction that results in a tax consequence for the party who executes the event. Common examples of taxable events for investors include receiving interest and dividends, selling securities for a gain and exercising options.
Investopedia Says

Investopedia explains 'Taxable Event'

Investors should focus on limiting their taxable events, or at least minimizing high tax rate events while maximizing low tax rate ones. 

Holding on to profitable stocks for more than a year (to eliminate short-term capital gains) is one of the easiest ways to minimize the effects of taxable events.

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'Taxable Event'

  • Get The Most Out Of Employee Stock Options

    http://www.investopedia.com/articles/optioninvestor/07/esoabout.asp
    ... For non-qualified stock options (NSO): The grant is not a taxable event. Taxation
    begins at the time of exercise. ... The first taxable event occurs at the sale. ...

  • How To Reduce Taxes On ETF Gains

    http://www.investopedia.com/articles/exchangetradedfunds/08/etf-taxes-introduction.asp
    ... sales. As a result, they do not create taxable events. However, when you
    sell an ETF, the trade triggers a taxable event. Whether ...

  • LTC Annuities: 2 Safety Nets In 1

    http://www.investopedia.com/articles/retirement/07/long_term_care_annuity.asp
    ... an annuity is overlaid with LTC insurance, but the tax code allows premiums to be
    deducted from the annuity's income stream without creating a taxable event. ...

  • Sometimes It Pays To Borrow From Your 401(k)

    http://www.investopedia.com/articles/retirement/08/borrow-from-401k-loan.asp
    ... Receiving a loan is not a taxable event unless the loan limits and repayment
    rules are violated, and it has no impact on your credit rating. ...

  • Four Companies Buying Its Own Debt

    http://stocks.investopedia.com/stock-analysis/2009/Four-Companies-Buying-Its-Own-Debt-XLNX-CIT-AMKR-AN0218.aspx
    ... $250 million. Taxable Event When a company purchases its own debt, it is
    considered extinguished for accounting purposes. Thus usually ...

  • Using ETFs For Small Periodic Investments

    http://www.investopedia.com/articles/exchangetradedfunds/08/ETF-periodic-investment.asp
    ... higher than their purchase price. This means you are in control of when
    you incur a taxable event. Index fund investors will also ...

  • Using ETFs For Small Periodic Investments

    http://www.investopedia.com/articles/exchangetradedfunds/08/etf-periodic-investment.asp
    ... higher than their purchase price. This means you are in control of when
    you incur a taxable event. Index fund investors will also ...

  • What advantages do exchange-traded funds have over mutual funds?

    http://www.investopedia.com/ask/answers/09/etfs-vs-mutual-funds.asp
    ... stock, thus shielding the fund from any need to sell stocks to meet
    redemptions. Therefore, it is not treated as a taxable event. ...

  • Get A Short-Term Advantage In The Money Market

    http://www.investopedia.com/articles/pf/06/shorttermmoneymarket.asp
    ... (To learn more, see A Long-Term Mindset Meets Dreaded Capital Gains Tax.) A taxable
    event can be avoided by buying into tax exempt money market funds. ...

  • How To Reduce Taxes On ETF Gains

    http://www.investopedia.com/video/play/reducing-taxes-on-ETF-gains
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