If I sell a stock with a 15% short term gain, What % do I need on the next stock to overcome taxes?

Question

Trying to determine is short term gains are much more costly than long term gains in reference to stock trades

Answer 1

short gain losses offset short term gains 1:1. long term losses offset long term gains 1:1. Total losses reported on income taxes cannot exceed $3,000, but can be rolled over indefinately.

Answer 2

I believe you are asking how much more of a return you need to make up for the higher tax you will pay on Short Term gains versus Long Term Gains. The answer depends on your level of income, because short term gains are taxed at marginal rates. I will assume you're in the 25% bracket.

If you invested $100 and the investment appreciated to $115, then you sold within a year, the tax would be 25% of the $15 or $3.75. If you sold after one year for the same price of $115, the tax would be 15% or $2.25, a difference of $1.50, which is the 10% spread between your marginal rate of 25% and the LT gain rate of 15%. To makeup this $1.50 difference, you need to generate an after tax return of $1.50 on your proceeds of $111.25 ($115-$3.75). This would require an additional gain of 1.34% after tax which equates to 1.57% if your second trade is a long term gain (1.34%/(1-.15)) and 1.78% if the second sale is another short term gain(1.34%/(1-.25)).

Replace .25 with your marginal tax rate if it is different.

Answer 3

Your bracket consists of the full 3 hundred and sixty 5 days, that's not important while for the duration of the 300 and sixty 5 days you offered the inventory. so which you will could finished up your finished earnings for the 300 and sixty 5 days consisting of the two jobs, the income from the inventory sale, the taxable area of any unemployment reward, and the different earnings, and calculate the tax on that. decrease than the situation you supply, your bracket for the 300 and sixty 5 days could be around 25% till the quantity of the inventory income is huge, then it could be 28% or perhaps greater. without understanding plenty greater element, there is no thank you to grant you a actual good answer.

Answer 4

I am not 100% sure as to what you are asking but.....

1) Any losses (long term or short term) offset any gains so in order to avoid paying taxes on your gain you would have to lose the same amount of money another stock or other capital asset. Losing money on purpose to avoid paying taxes on other gains is a rather stupid idea.

2) If you are asking what percentage of your proceeds you have to reinvest to avoid taxes on the first sale, the answers is zero. You can not avoid taxes by reinvesting the proceeds.

Answer 5

short term gains have ALWAYS been taxed at a higher rate than long term - the rates on the two have changed frequently over the years as well as the time frame needed to count as a long term hold

Answer 6

hi friend...Investing in stock market is really a good idea..we cannot predict the future in stock market so Before investing learn more basics about it.. If you are first time investor means just go to the broker office & get the guide from them.Just take a look at the below link to get free information regarding stock market.