Any accountants-tax question

I will be selling some stock this year so next year's tax returns will have me owing money. I was told to hold 20% of the money I make for taxes. If say, I normally get back about $2,000 every year at tax time, would I minus that money from what I would owe? Sorry to make it sound so confusing but I just need to know how much money I will have to spend on home improvements.
Thanks!

Re: Any accountants-tax question

Will you be selling these stocks at a profit? Were they held long term?

Re: Any accountants-tax question

Were they incentive stock options?

Re: Any accountants-tax question

Re: Any accountants-tax question

Re: Any accountants-tax question

You'll be paying 15% Long Term Capital Gain taxes (taxpayers in the 25%, 28%, 33%, and 35% tax brackets ).

Measuring Capital Gain

Your capital gain from a sale is measured by the difference between the amount realized in the sale and your basis in the asset you sold. Roughly speaking, the amount realized is what you received on the sale — usually measured by the sale price minus the brokerage commission. Your basis is based on your cost (usually the purchase price plus the brokerage commission) but may be adjusted as a result of various events. For example, if your stock splits while you own it, the basis splits, too.

Example: You buy 100 shares of XYZ at $35, paying $3,500 plus a brokerage commission of $40. Your basis is $3,540. Later, you sell when the stock is at $39. You receive $3,900 minus a brokerage commission of $40, so your amount realized is $3,860. Your capital gain is $3,860 minus $3,540, or $320.

If your basis is greater than the amount realized, you have a capital loss.
What About Capital Losses?

Capital losses are used first to offset capital gains. If there are no capital gains, or if the capital losses are larger than the capital gains, you can deduct the capital loss against your other income — up to a limit of $3,000 in one year. If your overall capital loss is more than $3,000, the excess carries over to the next year. In other words, you treat the extra portion as if it were an additional capital loss in the following year.

Example: In 2002 Ted had a $4,000 capital gain, and a capital loss of $11,400. He used $4,000 of the capital loss to offset the capital gain: that left a net capital loss of $7,400. He claimed $3,000 of the loss on his 2002 return. The effect was to reduce his taxable income by $3,000. Ted was in the 30% bracket, so the loss decreased his 2002 income tax by $900. The remaining $4,400 of capital loss carried over to his 2003 return.
In 2003 he had a $500 capital gain and no capital losses except for the carryover. So he used $500 of the $4,400 carryover to offset the gain, leaving a capital loss of $3,900. Once again, Ted deducts $3,000 of the loss — and carries over the remaining $900 to 2004.

Re: Any accountants-tax question