when do you pay taxes on stocks?

Question

for example, i sell a stock and make profit on it, will the taxes bededucted right away when the profit is deposited in the account or i will have to pay taxes when i cash out the money? or if not these situations, then when do i pay taxes?

Answer 1

You pay taxes for the tax year when you made your profit. If a loss then that is also reported for that tax year. It's payable by the 15th of April for that year. If you are like me, then you use Turbo tax. If you use an on line broker, then they have a file that you can download to you tax form. Easy as can be. It puts it right into the right schedule. I did it for the first time last year. Piece of cake.

Answer 2

Taxes On Stocks

Answer 3

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Answer 4

You pay the taxes when you file your tax return. Taxes are not taken out on a stock sale. If your gain was large enough though, you could pay a quarterly estimate to cover the tax. If your gain is short-term (held less than 1 year before selling the stock) your tax rate would be your regular rate. If your gain is long-term (held 1year or more before selling it) your tax rate would be a maximum of 15% (5% for those in the 10 or 15% brackets). Quarterly estimates are due the following dates, 4/15, 6/15, 9/15, and 1/15 of the following year.

Answer 5

Your sale is based on when the transaction occurs. You include the sale on schedule D on your taxes. Brokerage houses generally won't withhold state or federal taxes on stock sales that are not in retirement accounts (IRAs).

It is a fairly complicated topic. It is probably worth your time and money to consult with a tax advisor rather than make a mistake on your taxes and end up paying interest and penalties -- usually 2 to 3 years later when you don't remember what you did.

More information can be found in publication 17 from the IRS. Or you can go to www.irs.gov and search for 'capital gains'

Answer 6

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RE:
when do you pay taxes on stocks?
for example, i sell a stock and make profit on it, will the taxes bededucted right away when the profit is deposited in the account or i will have to pay taxes when i cash out the money? or if not these situations, then when do i pay taxes?

Answer 7

I pay taxes each year on my interest earned. If I sell my stock and take out my money, do I have to pay taxes on it again?

Answer 8

You'll calculate and pay the tax when you file your tax return for the year of the sale. If your gain is large enough, you should make a quarterly estimated payment to cover the tax, to prevent being charged a penalty for under-withholding when you file your return.

Answer 9

Your first step would be to consult your broker/brokerage firm. I've seen stock transactions where the taxes are already deducted on the 1099 and other transactions where only the brokerage fees are deducted and the tax payer has to remit the taxes on the amount when filing their taxes on or prior to April 15th. You will pay taxes on a profit when the transaction takes place whether or not you actually receive the cash. Even if the profit is reinvested - you will still pay taxes during the tax year the transaction takes place. Again, the best way to find out the answer to your question is to contact your broker/brokerage firm.

Answer 10

pay taxes stocks