2007-09-22 09:43:31 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
You can open a IRA or 401k account and invest some or all of your profit. There is a max per year that you can contribute. But those contributions will now be tax deferred.
If you held those stocks over a year those are long term capital gains that will be taxed at a lower rate than your ordinary income. So go online and fill out a schedule D according to the instructions so you can estimate how much in gains you will be taxed next year.
You will still pay the capital gains tax but you can reduce your taxable income overall by just putting money into a tax deferred retirement account whether from ordinary income or money earned from your investments. Good luck.
2007-09-22 10:39:52 · answer #1 · answered by Marupanaka 2 · 0⤊ 0⤋
Yes. You still have to pay tax on the profit you made. The only way around it is if you bought stocks now and sell them at a loss before the end of the taxation year. Then your profit will shrink or be gone depending on the amount of the loss.
2007-09-22 09:53:45 · answer #2 · answered by Alletery 6 · 0⤊ 0⤋
If you had a gain on the sale, then you'll have to pay tax on the gain. What you do with the money, buy more stocks or do anything else with it, doesn't change the tax situation on the sale at all.
2007-09-22 10:45:01 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Part of it depends on how quickly you sell. If you are going to pay taxes on returns, it is better to lock in the long term capital gains tax at a lower rate.
2007-09-22 16:54:53 · answer #4 · answered by B 2 · 0⤊ 0⤋
You will have to pay, if you made money on the stock. Either ordinary income or capital gains...depending on how long you owned the stock.
2007-09-22 09:51:42 · answer #5 · answered by regerugged 7 · 0⤊ 0⤋
if you got a profit on the sale, yes.
2007-09-22 10:17:04 · answer #6 · answered by Anonymous · 1⤊ 0⤋