2007-01-30 09:52:30 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
You pay capital gains tax on profit from the sale if any - the difference between your cost and the amount you get for selling it. You also can deduct losses. Dividends are taxed as income.
Keep good record so you know your cost basis when it comes time to sell.
2007-01-30 10:01:08 · answer #1 · answered by Cindy W 3 · 0⤊ 0⤋
If you sell the stock, you'll have to pay capital gains tax (unless there is a loss)(I think this is based on the difference between the original purchase price and the sale price, i.e., profit), otherwise you always have to include dividends in your annual income and pay tax on that.
2007-01-30 10:02:12 · answer #2 · answered by Deborah C 5 · 0⤊ 0⤋
it really is extremely not that complicated. There are 2 sorts of effective factors/losses. in case you promote the inventory interior one 3 hundred and sixty 5 days of purchase, that is a little while period capital benefit and also you pay taxes on it come April 15 on a similar cost as your income. in case you promote it better than one 3 hundred and sixty 5 days after purchase, that is a lengthy time period capital benefit and your tax is 15 - 18% depending. All taxes on inventory sales are due April 15. contain the cost of the transaction, i.e. $7.50 per commerce from Scottrade.
2016-12-03 06:17:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You pay capitol gains on any profits when you sell.
How much/what rate you pay depends on how long you had the stock.
Less than 1 year its almost twice as much as if you keep it over a year.
Short term vs long term gains.
And yes, dividends are taxed as income, same as interest on savings accounts.
2007-01-30 10:08:54 · answer #4 · answered by mslider2 6 · 0⤊ 0⤋
taxes on dividends and profits. But you have to have your buy confirmations to prove the price you paid for them. Or the government will believe the lowest price paid in that year will be there buying price.
2007-01-30 22:17:31 · answer #5 · answered by ALunaticFriend 5 · 0⤊ 0⤋
TAXES are always paid on profit. The base (cost) is not taxed.
2007-01-30 10:20:04 · answer #6 · answered by whatevit 5 · 0⤊ 0⤋
Dividends are special, since there is short term and long term dividends (depending on how long you hold the stock). You will need the 1040 to do the math. The buying and selling of stocks is put on the Schedule D form. That form is also where you report losses.
2007-01-30 10:08:10 · answer #7 · answered by gregory_dittman 7 · 0⤊ 3⤋
Dividends. Gain when sold. Capital gain distributions if mutual fund/etf. This is not important. Starting to invest is.
2007-01-30 10:43:52 · answer #8 · answered by vegas_iwish 5 · 0⤊ 0⤋