2007-01-19 01:53:59 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You do not pay taxes on any increase in value until it is sold. This is called capital gains tax and if the stock was held longer than a year you get the long-term rate, which is lower than your regular tax rate (in most cases). The only thing taxable at the end of the year (if the stock hasn't been sold) is any dividends received.
2007-01-19 02:03:23 · answer #1 · answered by strawberrycrush 4 · 2⤊ 0⤋
You do not have to pay taxes on the increased value if you still own the stock (unrealized capital gains). Once you sell the stock for a profit and get the money in your hand (realized gain), then you own capital gain taxes. If while you own the stock, the company sends you dividend checks (or you have the dividends reinvested into more shares), you will owe taxes on those dividends.
2007-01-19 02:05:16 · answer #2 · answered by gosh137 6 · 1⤊ 0⤋
Actually, you do not have to pay any tax on stock until you sell it. You only pay capital gains on the sale of an asset, not on simply holding it.
For instance, if you had a stock with a $5 basis, and it goes up to $7, you dont have to pay anything. If you sold the the stock for the $7, then you would have to pay a capital gains tax on those proceeds.
Currently, the capital gains tax caps at 15%.
2007-01-19 02:03:35 · answer #3 · answered by M O 6 · 1⤊ 0⤋
You have to pay taxes on the profit when you sell the stock. If it has increased in value but you have not sold it yet, no tax is due.
2007-01-19 03:42:41 · answer #4 · answered by growing inside 5 · 0⤊ 0⤋
If it just went up and you didn't sell it, no, it has no tax effect. If the stock paid dividends, you'd have to claim that, even if you reinvested the dividends and didn't actually receive the money.
When you sell it, you'll pay tax on the overall gain if there is one.
2007-01-19 04:20:15 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
As far as I know--sorry. Call 1.800.829.1040. That's the number for individual tax returns effective Jan. 2007.
2007-01-19 01:58:29 · answer #6 · answered by Anonymous · 0⤊ 3⤋
yup, capital gains tax
If you can claim yourself, pretty much the first 7K of anything is pretty much exempt.
poor people don't have to pay taxes much, some even get an anti tax.
2007-01-19 01:59:54 · answer #7 · answered by kurticus1024 7 · 0⤊ 3⤋
not until you sell it,
2007-01-19 02:06:31 · answer #8 · answered by Benro 2 · 1⤊ 0⤋