And what would that time frame be?
2007-10-04 06:09:24 · 10 answers · asked by I have a ? 2 in Business & Finance ➔ Taxes ➔ United States
Yes. Even if they are reinvested instantly, like if you trade stock in one company for stock in another company, and never receive or pay any actual money, the sale (or trade) is still subject to capital gains tax.
2007-10-04 08:20:56 · answer #1 · answered by StephenWeinstein 7 · 0⤊ 0⤋
You can avoid capital gains tax on the sale of your principal residence under some conditions. Other than that, all capital gains are taxed.
It is sometimes possible to defer paying tax on capital gains.
If your gain is from the sale of income producing property, and you exchange that property for a like-kind property, you may be able to defer capital gains. If you intend to reinvest in a like-kind property, see an agent that deals with 1031 exchanges for guidance in how to proceed.
If your gain is from a casualty or theft (as in the case the insurance company pays you to replace the property), you may be able to defer tax on the gain by replacing the property.
But just reinvesting the gain will not result in a reduction or deferral of tax.
2007-10-04 07:08:16 · answer #2 · answered by ninasgramma 7 · 2⤊ 0⤋
Capital gains will always be taxed, reinvestment or not. All investments are like that. If they are in a traditional IRA, they are tax- deferred, but not tax-free. You still have to pay either way.
2007-10-04 06:12:34 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you do a like kind exchange under Internal Revenue Code Section 1031, the tax will be deferred. This is not a do it yourself project so you should consult with an enrolled agent, CPA or tax attorney for guidance about how to proceed.
2007-10-04 06:53:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you have a gain, it's taxed for that year - reinvesting the proceeds doesn't change that.
2007-10-04 10:55:59 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
0 days....0 hours.....0 minutes.
If you sold something at a gain, the gain is taxed regardless of what you do with the money.
The only way to postpone the tax is to do a 1031 Exchange in which you exchange one property for another and don't actually receive cash.
2007-10-04 07:07:01 · answer #6 · answered by Wayne Z 7 · 1⤊ 0⤋
The Capital features tax on Collectibles and useful metals is already at 28%. i'd truly like somebody to describe the coolest judgment in taxing my gold if i choose to apply it in substitute for products and centers. The shape says i'm allowed to apply gold and silver to pay funds owed. yet now the government needs to tax my gold and silver because of the fact they allowed the Federal Reserve to break the linked fee of the dollar. As for elevating taxes...do not blame the democrats. Blame Bush and the republicans for increasing the national Debt from 4.6 Trillion to 9.3 Trillion in 7 years. in case you vote McCain, he's purely going to make it worse. he's working on a platform that its greater important to shrink taxes than that's to stability the fee variety. i ask your self why there's a credit disaster in this usa...Oh yea, it because of the fact we persist with the occasion set with the help of our government, rack up massive funds owed and by no ability pay it back. do not thieve-the government hates opposition.
2016-10-21 00:57:37 · answer #7 · answered by ? 4 · 0⤊ 0⤋
Depends on the type of investment and the amount. Real estate investment gains are usually 2 years (I think). Talk to a bank or an accountant.
2007-10-04 06:12:43 · answer #8 · answered by badkitty1969 7 · 0⤊ 3⤋
Yes, unless it's a Roth IRA.
2007-10-04 06:17:53 · answer #9 · answered by Anonymous · 0⤊ 0⤋
You will be taxed for breathing man.
2007-10-04 06:12:08 · answer #10 · answered by hatingmsn 6 · 1⤊ 1⤋