www.irs.gov?

Question

If you have profits from the stock market, is all of it taxable even though it has been re-invested or rolled over? Is profits within an IRA taxable?

Answer 1

The profits from transaction within an IRA account are not taxible. However, if it is not in a retirement account, then everytime you sell a stock it is a taxable event, even if you purchase other stocks with your proceeds. If you made a profit, that profit is taxable. If you had a loss, that loss is deducted from your profits.

Answer 2

Profits from the stock market are not taxable unless you have capital gains. You should receive a Form 1099-DIV and a Form 1099-B. Also I'm not sure what you mean by profits form an IRA. If you have an IRA -you can contibute up to a maximum amount each year. There is a larger maximum for filing jointly. The amount(s) you contributed is a tax deduction. Again, you should receive a tax form for your IRA. I cannot remember the form number...but is a common one.
The whole point of an IRA is to tax-shelter money.

I would strongly suggest having a professional process your tax return. They could also explain your tax situation so that you don't feel so vunerable.

Good Luck!

Answer 3

If you sell stock which is not in an IRA or other tax deferred account, you report it on Schedule D and pay tax on the capital gain.
Profits within an IRA are not taxable until money is withdrawn. The IRA withdrawal is usually fully taxable as ordinary income.
Your question is not definitive. If the answers are unclear, resubmit the question telling us exactly what you did, and in what type of account.

Answer 4

you need to report stock sales on Schedule D, even if you re-invested the money. put down the cost and sales proceeds to arrive at the capital gain or loss. if you held the stock for more than a year before selling it, the capital gain is taxed at 15%. you can deduct capital losses only up to ($3,000). any excess capital losses will be carried forward to future years.

any stock sales in your IRA/retirement plans are not reported. they are not taxable.

Answer 5

Gains in qualified retirement plans accumulate tax-free until you withdraw them.

Taxable gains from stock market investments (not part of a qualified retirement plan) ARE fully taxable in the year that the gain is realized even if they are reinvested. The tax treatment depends upon what the gain is. Dividend reinvestments and short-term capital gains are taxed as ordinary income at your marginal rate. Long-term capital gains are taxed at the lower long-term capital gains rate of 15% (for most types of gains and taxpayers, there are exceptions.)

Answer 6

That's a very good question! It depends on how you rolled it over. The bottom line is that if it ever passed through your hands, you have to pay tax on it. A good financial advisor can help you pick a good place to roll it over, if you haven't yet.