I purchased a stock during 2007 and it has gone up in value. Assuming I hold the stock for 2 - 3 yrs, do I have to report the increase in value to the IRS or only after I sell it.
2007-05-23 09:14:30 · 6 answers · asked by jgb 1 in Business & Finance ➔ Taxes ➔ United States
You are only required to report any stock activity in the year that you sell it. If you sell it for more than you paid for it you have capital gains, if you sell it for less than you paid for it you have capital losses. If you hold the stock for 1 year before you sell it any gains or losses you have would be long term. If you hold it for less than that it would be short term. You can offset capital gains with capital losses, but if your gains are more than your losses you will pay taxes on the net amount of the gains. If your losses are more than your gains, you can deduct up to a maximum of $3,000 per year ($1,500 if married filing separately) and carry forward the excess until you use it up. If you inherit any stock, your holding period is automatically long-term.
2007-05-23 10:15:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You only report gains or losses on a stock the year that you sell it.
2007-05-23 09:22:21 · answer #2 · answered by bcfa_6 1 · 0⤊ 0⤋
The gain is taxed in the year the stock is sold.
2007-05-23 09:20:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Only when you sell it, and there is a law saying you have to pay. (I assume there are no employee stock options involved.)
2007-05-23 09:22:03 · answer #4 · answered by CarVolunteer 6 · 0⤊ 0⤋
Yes, you only report it when you sell it, not each year that you continue to hold it.
2007-05-23 09:30:24 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Only after you sell it...if you really want to pay taxes on it. However, there is no law requiring the average American to pay income taxes. NO LAW!
Knowing this, why would you pay for something you don't have to?
2007-05-23 09:20:06 · answer #6 · answered by Anonymous · 0⤊ 4⤋