posted
I have been trading since January and I am a little concerned about the taxes involved with trading stocks.
Question 1: Do I pay taxes only on gains? For example if I buy 1000 shares of stock XYZ at 1 dollar a share, and I sell it at 80 cents a share, do I have to pay taxes on that sale?
Question 2: What is the going tax rate if you were to have a capital gain? 15%
I would appreciate any help, thanks.
-kenbo
Posts: 44 | From: Redding, California, USA | Registered: Feb 2004
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posted
K88 BF is correct especially if you are active. Here is the rough deal 1-Gains & losses offset each other within a year 2-Gains after one year falls into "Capital" at a lower rate. 3-You should track you P&L on a quaterly basis & file a 1040es Federal & State if applicable. 4-If you are good enough or lucky to hit a great deal you can refigure income & loss back for 3 years. 5-If you lose big you can carry losses forward, using $3000/yr. VAN Just got off phone with accountant and they have now withdrawn ability of the Individual to average back 3 years
[This message has been edited by VNGNTN1 (edited April 13, 2004).]
[This message has been edited by VNGNTN1 (edited April 14, 2004).]
Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003
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