forbanger
Contributing Member
Cash: $ 6.80
Posts: 31
Joined: 27 Dec 2007
Location: up north
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Hi guys!
Just wondering what percentage I should keep seperate for taxes on my short term stock gains?
Thanks!
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Mon Jun 09, 2008 4:23 pm |
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pf101
Senior Member
Cash: $ 62.25
Posts: 311
Joined: 12 Sep 2007
Location: Portland, OR
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short term gains (less than 1 year) are taxed as regular income so set aside the same % as is taken out of your paycheck.
Dividends and gains held for longer than a year are taxed at 15%.
Personal Finance 101
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Mon Jun 09, 2008 5:49 pm |
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shaneroof
Contributing Member
Cash: $ 9.20
Posts: 46
Joined: 16 Jul 2008
Location: washington dc
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 Hello, this was the right thing that you have done. I don’t think that you were wrong.
All the best!
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Wed Jul 30, 2008 5:00 pm |
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Avino
Preferred Member
Cash: $ 24.80
Posts: 117
Joined: 27 Mar 2006
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Wait a second, if I buy a stock today at $10, and at the end of the year the stock is worth $50. I have to pay taxes on the $40 even though I haven't sold the stock yet, in other words its still an unrealized gain.
Can someone please clarify this a bit for me, as this is the first year I started playing in the stock market in regular taxable brokerage accounts (with my after tax dollars).
~A.
Also blogging @ avinos2cents.blogspot.com
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Wed Jul 30, 2008 5:45 pm |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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Unless you are into stock trading as a business and elect to do mark-to-market specific to that, you only pay capital gains on stocks you actually sell. If you held the stock for over a year before selling, you pay the long term gain rate (typically 15%, less if 15% tax bracket or lower). That is explained in Schedule D instructions. You pay no taxes for stock you are just holding (unless your state has funky regulations for their tax).
Note that tax rates are progressive. So in a taxable account reserve enough to cover tax for gains at your marginal tax bracket (not the average tax you pay on all your income). See http://www.irs.gov/formspubs/article/0,,id=164272,00.html
Also note that if you owe more than $1000 at tax filing time, you may get hit with a prepayment penalty (with a few exceptions). So unless you adjust your W-4 withholding to account for realized gains (on stocks actually sold), you may need to file 1040-ES quarterly or by January 15 deadline of following year if you have a windfall gain.
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Wed Jul 30, 2008 11:10 pm |
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Avino
Preferred Member
Cash: $ 24.80
Posts: 117
Joined: 27 Mar 2006
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Some taxes I believe are fair, but most make me feel how a school girl might feel if a teacher kept trying to put his hand up her skirt! Sorry for the graphic description, but I live in Taxachusetts and sometimes taxes are just plain disgusting. Especially only temporary ones we have here in our Commonwealth that for some reason fail to expire year after year.
Thanks for the information on the stock gains and short term and long term explanation and taxes.
~A.
Also blogging @ avinos2cents.blogspot.com
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Thu Jul 31, 2008 1:13 pm |
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