How do you figure a capital gain or loss?? When you cash stock.. To apply to your taxes..?

Answer 1

If you held the stock more than one year it is long term gain or loss. If less than one year it is short term gain or loss.

Use Schedule D, form 1040.

Take the price you sold it at and subtract the price you bought it for including commissions, The difference is the gain or loss. If you did not sell all that you pruchased, prorate the cost based on the number of shares you sold. You should have received a 1099 stating the sales price.

After you fill in Schedule D, if you have long term gains, there is a very complicated work sheet to figure your taxes. Just like the government. Let's see how difficult we can make this. The work sheet is not really that difficult. It is just they way the IRS layed it out that makes it so.

You can download the forms and work sheets from the IRS site.

Here is the link.

http://www.irs.gov/formspubs/lists/0,,id=97817,00.html

Answer 2

Your capital gain or loss is the amount you received from selling the stock less the cost of the stock when you purchased it. Do not forget to include the buy/sell commission as this reduces your gain or increases your loss.

As for taxes, the Length of time you held the stock helps determine whether your gain is a short-term or long-term gain. Long term gain tax rate is lower. As for losses, you are only permitted a maximum capital loss per year, but you can carry-over any remaining amount to next year.

Answer 3

The gain or loss is the difference in what you paid for the stock and what you sold if for.

Report capital gains and losses on Schedule D.

Answer 4

I trade stocks and have numerous trades to report. If you are like this, then you will need the continuation sheet to schedule d....which is d1.
The rest information above is correct. If you have a brokerage account, then the broker will send you a year end statement showing your cost basis and whether your trade resulted in a gain or loss.

Answer 5

Your brokerage firm should send you a form with all of you 2006 stock purchases. If some of the sales of your stock was from purchases from before '06, It should be in your records from previous years. You will put the amount of Sale and Purchase, these two will offset each other. Some brokerage firms are more helpful than others in digging up past info for you if you didn't keep your past records.

good luck & bless