Capital Gain Tax?

Question

I have $200 capital gain in stock market. Do I need to report it to IRS? Is there a minimum amount of gain that require reporting to the IRS?

Why does IRS only look at the price of stock sell but not the price of purchase? The tax me $4200 for the sellings x share of stocks. I show them the actual price of purchase and indicate a net loss. The IRS ignore me sent me a warning letter.

Does the IRS need money desperately right now?

Answer 1

1) Yes you need to report it.

2) Because only the sales price is reported to them by the broker. It is your job to track the cost and report it correctly on Schedule D. If you fill out the form correctly, you will only be taxed on the gain.

3) Yes but I guess that they caught your error through their matching program. The broker reported $4200 in proceeds to them and they expect to see $4200 on a Schedule D.

Take it to a professional before you dig yourself a bigger hole.

Answer 2

For your $200 capital gain, yes, you need to report it, and you'll owe tax.

The taxable gain is only what you made: sales price minus purchase price. You also subtract commissions that you paid.

As to your problem with the IRS questioning your loss, I'm going to guess that maybe the purchase price that you showed didn't match the price of the stock on the date you showed it as purchased. Check to be sure both are correct. If they are, then dig out your confirmation of purchase and send them a copy. You don't have to just accept it if they send you a letter questioning something on your return, but you do have to show some proof that you're correct.

Answer 3

No, we favor to incourage funding to create jobs. at the same time as Ronald Reagan diminished the expenditures extra money got here into the treasury. No monetary gadget has ever been inspired with the help of more advantageous taxes. decrease taxes and extra jobs will be created and a lot less people will want authorities information. Tax sales move up and prices down.

Answer 4

This site will help you answer your questions.

http://www.irs.gov/newsroom/article/0,,id=106799,00.html

Good Luck