What taxes will I owe on my investment gains?

If you transfer stocks into your Fool Wealth portfolio that are not included in your allocation, those stocks will be sold and you will owe any capital gains taxes that are generated from those sales—unless your portfolio is held in a tax-deferred account, like an IRA.

Your Fool Wealth portfolio is held in a brokerage account where stocks are bought and sold. As with any brokerage account, you’ll owe taxes on the gains realized in your taxable accounts. With your Fool Wealth portfolio, you own each and every holding—and those holdings show up directly in your account. You only pay taxes on your own holdings, as opposed to a mutual fund, where you would have to pay taxes when that fund’s capital gains are distributed among all of its investors.

For more guidance on your tax strategy, we recommend consulting with a tax advisor.