I need some info about capital gains and I need that info.....?

Question

in simple English. eh lets call it layman's term//
what do I pay if I sell within a year? and is that inclusive to my income tax?
Do I need to hold the stock for a year so I can benefit? will I pay C G s on stock that I have had over a year? slightly confused and hate looking in the IRS web page because I am a dexlexited deralick

Answer 1

Sell it for more than you bought it for and it's capital gain, sell it for less and it's capital loss. Loss can be offset against gains, and if your losses are more than your gains you can deduct up to $3,000 ($1,500 if married filing separately) against other taxable income.

Hold the stock for less than 1 year and it's short-term capital gain, which is taxed at your regular tax rate.

Hold the stock for 1 year or longer and it's long-term capital gain, which is taxed at either 15% or 5% (5% if you are in the 10% or 15% tax bracket). Inherited stock is always considered long-term no matter what the holding period.

Income from selling stock is includable in figuring your income taxes, but it's the net gain or loss, not how much you actually got paid for selling it that is taxed.

This simple enough?

Answer 2

If you hold the stock for more than 1 year you will pay CG at 5 or 15% (most people pay the 15%). If you sell the stock prior to a year you will add any gain to your ordinary income and pay what ever rate you have reached. CG is selling price minus purchase price plus cost of sale and purchase(commissions). If that results in a loss you may be able to make an adjustment (lower) to your income.

Answer 3

If you sell stock at a gain that you didn't own for at least a year and a day, it's called a short term capital gain and you'll pay tax at the same rate as if you made that much extra in salary. If you sell it after you own it for at least a year and a day, it's called long term capital gains and you pay a lower rate of tax on that gain amount.

Answer 4

comprehend, that if Obama is elected, it would not advise that his tax techniques would be enacted into regulation. To be enacted into regulation demands (actually) and act of congress. Congress makes the regulation, no longer presidents. Capital useful factors isn't in basic terms for homes. something absolutely everyone owns that useful factors in value would be difficulty to capital useful factors taxes, if bought. The "if bought" is best. What the quantity of income for what capital useful factors share is a controversy of political debate between the congress, so an income point at this component won't be predictable. the present income exclusion for residing house sales is amazingly time-honored, so it probable is only no longer replaced.

Answer 5

If you have small enough income and capital gains, the long term rate in 2008-2010 is ZERO, unless Congress changes the law again.