how does buying stock affect your yearly taxes?

Question

please provide a source of how it affects the taxes. taxes are for illinois.

Answer 1

Buying stock does not effect taxes at all. Selling stock creates a capital gain or loss that is taxed/deductible. If the stocks pay dividends, they are taxable income. If the stocks are held in an IRA, 401(k), or other tax deferred plan, taxes are only paid when you take the money out of the plan.

Answer 2

Buying stocks itself does not affect your taxes. Dividends from the stock are taxable. Stocks when sold affect your taxes and they are taxed at a lower rate than your income tax. Check the tax codes for your salary range.

Answer 3

Buying stock doesn't affect your taxes.

Receiving a dividend is taxable income (but at a lower rate then ordinary income).

Selling stock at a profit is taxable income, and if you held it long enough, it is also taxed at the lower rate than ordinary income).

Buying and selling short term generates losses and profits - taxed at ordinary income, losses can offset profits up to $3,000 > profits - if you have more losses, you cn carry over until you use them all up - lots of people in the stock market in 2000 are still using up their losses when the tech sector crashed.

Answer 4

Buying stock does not affect your taxes. It is only when you sell them that there might be tax implications.

You need to keep records of what stock you buy, what you paid for it, what fees you paid the brokerage company, and when you bought the stock. This becomes the "basis" for your stock. When you sell the stock this is the number you need to know.

Answer 5

Interest earned on savings is taxable at your highest tax rate. Dividends earned on stock investments is generally taxed at a top rate of 15%. If you sell the stock at a gain the gain is taxed at 15%.

Answer 6

If you lose money through stocks, you can deduct the money you lost through stocks in tax deductions.

Answer 7

DID YOU MAKE MONEY? Uncle SAM WANTS HIS SHARE!!