I have been trying to figure out taxes work on these things... im very new remember. could anyone explain to me how they work with stocks or point me in a direction that does?
Posted by broker1107 on :
What specifically did you want to know?
------------------ David C. Arena
Posted by cpeed on :
are you taxed evertime you sell a stock through the broker?
Posted by Jeremy on :
You are taxed, yes. But remember, if you sell for a loss, that actually subtracts from your taxable investment income.
For example, say you buy 100 ABC for 1,000 and you buy 100 XYZ for 2,000.
During the tax year, you sell ABC for 700, and sell XYZ for 2,500.
If those were your only trades for 2003, then here is your breakdown:
So your net result for trading in 2003 was $200, which if those stocks were held less than 1 year, that 200 would be taxed at your personal income tax level.
Mind you, this is a very simplified explanation. You need to be aware of many other things, such as potential "wash sales", you need to figure out the cost basis due to commissions, etc.
But that should help you understand the process of determining what you owe taxes on.
Posted by VNGNTN1 on :
CP IF you are trading in an "IRA" then tax is deferred until later. IF a regular account then tax is triggered with a sale reportable on 1040es quarterly Fed & St(if app) I do my tradng in IRA's and long term in regular brokerage accounts. Tax is the most significant cost in trading, check it out. VAN PS B1107 I am bumping a question.
Posted by broker1107 on :