The taxation of investments is an eternal topic. It should be addressed by anyone who wants to avoid any problems with the tax office. That's why it's good to know what the time test is, up to what amount you don't have to tax anything, or how to include income from investments in your tax return. Let's take a look at it.
The first thing to mention is at what rate investment income is actually taxed. There is a 15% tax on stocks, bonds, or mutual funds. Is it income from capital assets, or other income. The same tax applies to cryptocurrencies, but for them the calculation of the tax base (what you take money out of) is a bit more complicated. I'll cover the taxation of cryptocurrencies separately in a future post.
Before we get into taxation, let's note the scenarios where we are exempt from tax altogether.
The time test
By definition, the time test is the necessary holding period for securities to be exempt from paying…