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By Maureen Renzi, PICPA Vice President of Communications

Investing in the stock market can be complicated and unnerving, especially when you consider the wild swings of hundreds of points on some days. Investors also need to factor in the tax consequences of both making certain investments and timing the sale or purchase of stocks. I reviewed the advice from hundreds of PICPA’s Ask a CPA questions and other articles on PICPA’s consumer section of its website. Here are some highlights of things to consider during tax season, and all year long.

For the 2015 tax year, there are many considerations that affect tax planning, including capital gain and loss, the risk or benefit of holding a stock, and strategies for investments. Here’s some quick tips:

• Tips for 2015 taxes: Considerations for investors
• Special tax breaks for investments in small businesses
• How should tax on income from the investment of a supplemental needs trust be handled?
• Can a net long-term loss on the sale of a stock be carried over for Pennsylvania tax?
• If I want to cash in a percentage of my investment portfolio, is there a tax advantage in doing so using either the rollover IRA funds, fiduciary funds, or some combination of both?

Many individuals are invested in the stock market via their 401(k) or IRA retirement plans. There are tax consequences to consider from both the perspective of a person saving for retirement and using contributions to help reduce tax bills as well as individuals who are retired and planning for the most advantageous disbursements. Here are a few things to consider:

• Don't make these common IRA mistakes
• When CPA firms list that they do retirement planning, give investment advice, or offer personal financial planning, can they also sell securities, stocks, and long-term care or insurance policies? Must they be certified brokers as well?
• Where can I find IRA investment option advice?
• Is there a benefit to distributing a 401(k) to an estate rather than beneficiaries?
• I have an opportunity to roll my 401(k) to either my new company 401(k) or an IRA. What is the difference between these two plans?
• Are the gains on my IRA and 401(k) state taxable when withdrawn?
• Will I have to pay taxes if I transfer brokerage accounts?

When discussing investments, one option that often comes up is an investment product called an annuity. There are several questions related to annuities, and CPAs offer these tips as a general overview.

• Know your annuity basics
• Is the loss from a fixed/variable annuity tax deductible?
• What are the pros and cons of an annuity?
• Should I be charged a premium tax on an annuity?

This brief video also may help investors understand the tax consequences of capital gains and losses, net investment income, annuities, and more.

If you don’t have a tax professional and you’re not certain how this information affects your taxes and financial plan, it may be time to talk to a professional. Here are two final links that may help you.

• Checklist for finding a financial professional
• What’s the difference between an investment advisor, broker, and CPA?

If a CPA is what you need, check with family, friends, and colleagues for recommendations or use PICPA’s CPA Locator to find a CPA in Pennsylvania.