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Anyone familiar with selling stocks and tax time?
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Anyone familiar with selling stocks and tax time?
I have heard that I should take the amount I sold the stock for, minus it from what it was orginally bought for and take 15% and that is what I will have to pay taxes on it.
Is that true? I hope so because it is less than I thought!!!
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Posted 10/22/07 1:02 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: Anyone familiar with selling stocks and tax time?
helpful
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| Posted 10/22/07 1:19 PM |
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DDB336
LIF Toddler
Member since 8/05 421 total posts
Name:
Diana
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Re: Anyone familiar with selling stocks and tax time?
I think this is correct if you held the security a least a year. If it's less than a year then the tax rate on the gain is at your ordinary rate.
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| Posted 10/22/07 1:19 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Anyone familiar with selling stocks and tax time?
Posted by hazeleyes33
I have heard that I should take the amount I sold the stock for, minus it from what it was orginally bought for and take 15% and that is what I will have to pay taxes on it.
Is that true? I hope so because it is less than I thought!!!
It depends on the holding period. A year or less is considered short term capital gain and is taxed as ordinary income. A year plus 1 day is considered a long term capital gain and is taxed at the long term capital gains rate; which is 5% or 15% depending on your tax bracket.
You figure the your capital gain by
Gross proceeds of sale (lot)
- any transaction costs
- Cost basis (lot)
= Net proceeds...if it's more then your cost basis, you have a gain and if it is less, you have a loss.
Message edited 10/22/2007 1:34:56 PM.
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| Posted 10/22/07 1:34 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Anyone familiar with selling stocks and tax time?
I had the stock for 25 years.
Thanks!
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| Posted 10/22/07 1:54 PM |
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