If I sold stock in 2006, will I receive something for taxes?

Question

Do I need anything when I do my taxes?

Answer 1

You'll need the statements form your broker that shows the transactions. You'll have to figure the gain or loss on the sale. How that will affect your taxes will depend upon a number of things including how long you held the stocks, the amount of the gain or loss, etc.

You might want to consider some professional assistance as this can get a bit tricky.

Answer 2

You will get a 1099-B from your brokerage company or your bank telling you what you sold and what your gross proceeds are.

If you sold stock for a gain it will be taxed unless you are carrying forward a loss from sale of stock in prior years that will offset the gain by up to $3,000 each year until the loss is gone.

Otherwise, it is taxable, but only the difference (or gain) between your proceeds and what you originally invested (your cost basis).