How much do I pay in taxes from stock gains?

Question

For example I invest 13,,000 and earn 6,000 dollars so my total portfolio is worth 19,000.
How much would I owe the government?

Answer 1

If you bought a stock for $13,000 and sold it for $19,000, and did not invest any other money in that stock, you have a taxable gain of $6,000.

If you owned the stock for more than one year, your tax is a maximum of $900.

If you owned the stock for less than one year, your tax is your tax rate times $15,000. For example, if you are in the 25% tax bracket, you will pay $1,500.

Answer 2

Taxes On Stock Gains

Answer 3

Nothing, unless you sell the stocks. If the stocks pay dividends, however, see below.

Gains on stocks and other securities are only taxed when you sell them. The amount of tax will depend upon how long you held the stocks. If held for one year or less, the gain is treated as short-term capital gain and is taxed as ordinary income at your marginal rate. If held for over one year they're treated as long-term capital gains. The tax rate is normally 15%. However if your marginal rate is 15% or less, the rate drops to 5%.

If the stocks pay dividends, the dividends are taxable to you in the year that the dividends are made available to you, whether you take them in cash or re-invest them in more stocks. There are 2 types of dividends: Ordinary Dividends and Qualified Dividends. Ordinary Dividends are taxed at your marginal rate. Qualified Dividends are taxed as long-term capital gains at the rates noted above.

Answer 4

If the gains were made in this calender year and you are in the 15% bracket there would be not tax due anyway.

Answer 5

None....until you sell.

After you sell a stock, if you held it for more than 1 year, it is taxed at 15% (5% if you are in the two lowest brackets).

If you held it under 1 year, you are taxed at your marginal rate (10-35%) depending upon your total income.