Taxable events are transactions in your brokerage account that cause tax consequences. This applies to taxable and individual retirement accounts (IRA)
Below are examples of possible taxable events:
- You sell your investments. If those investments are sold for a gain - they will generate a tax liability. Your yearly tax liability is the net gain/loss from all sold positions
- You receive dividends or interest income (took out securities)
- You withdraw from your IRA (whether qualified or unqualified)
To verify if your account has a taxable event, log into your M1 account and review your statements.
*M1 Finance does not provide tax advice. Please contact your tax professional should you have any questions.