taxes on stock earnings?

[Greg_D]

Also, capital loss deductions are limited to $3,000 per year ($1500 if single), not 12k or 15k as someone else mentioned. If you have more than $3k in losses you can carry it over year to year.

This $3,000 limit applies to taxpayers who use the single, head of household, married filing jointly, or qualifying widow/widower filing statuses. Married people filing separately are limited to $1,500 per person on net capital losses.

Single Capital Loss is also $3000/yr:
>>Stocks gains and losses are taxed as "Unearned Income" and fall into several categories
---- short-term gain/ordinary dividend[add to you income and tax]
---- long-term gain/qualified dividend[taxed at a flat 15%]*
* assuming you make more than the standard deduction
https://www.investopedia.com/terms/u/unearnedincome.asp

 

[Greg_D]

Dang, well that sucks lol

So if i buy some stock at 8 a share (and spend like 1000 bucks) and sell when it reaches 15 within a year, ii make 875 bucks

Then take the 875 and hit it with my current effective tax rate? What if my reported income is under 20k yearly? Way below poverty line

if married ZERO, The $875 will be added to your income <20K income which is below the standard deduction of $24,400.
if single, very little, taxed only on amount = (income + short term gains) - standard deduction

 

[chucklenut]

if married ZERO, The $875 will be added to your income <20K income which is below the standard deduction of $24,400.
if single, very little, taxed only on amount = (income + short term gains) - standard deduction

thanks, that makes sense

it isnt that im trying to avoid paying taxes on what i think is fair, hell even this which i think is unfair wouldnt bother me if the taxes were taken out at the point of sale (like a sales tax) just because i hate having to go back and owe the sons-uv-bitches money. i like to complete a transaction, close it out and move on

 

[sparked1]

This $3,000 limit applies to taxpayers who use the single, head of household, married filing jointly, or qualifying widow/widower filing statuses. Married people filing separately are limited to $1,500 per person on net capital losses.

Single Capital Loss is also $3000/yr:
>>Stocks gains and losses are taxed as "Unearned Income" and fall into several categories
---- short-term gain/ordinary dividend[add to you income and tax]
---- long-term gain/qualified dividend[taxed at a flat 15%]*
* assuming you make more than the standard deduction
https://www.investopedia.com/terms/u/unearnedincome.asp

That’s pretty much what I stated, no?

 

[Greg_D]

capital loss deductions are limited to $3,000 per year ($1500 if single)

($1500 if single) is not correct, it's $1500 if married filing separately.
$3000 for single & married filing jointly.

 

[sparked1]

($1500 if single) is not correct, it's $1500 if married filing separately.
$3000 for single & married filing jointly.

Ah, gotcha. Good catch.

 

[MuleShoe]

my CPA figures my taxes yearly on my stock dividends as I file taxes!

 

[TheGman]

my CPA figures my taxes yearly on my stock dividends as I file taxes!

Dividends are taxed favorably thus far unlike interest which is treated as regular income.

I use dividend reinvestment (buys more stock with dividends).

Your still taxed but if things go well over time the reinvestment yields far more $$$

 

[MuleShoe]

Dividends are taxed favorably thus far unlike interest which is treated as regular income.

I use dividend reinvestment (buys more stock with dividends).

Your still taxed but if things go well over time the reinvestment yields far more $$$

. I have mine set up the same where the dividends are put in to more stock shares!

 

[mtnsmith]

question, at which point do you have to pay taxes on the sale of stocks?

i find the answer to these questions a big maybe lol

kinda bull**** that you can spend taxed dollars to gamble and then if the gamble pays off you owe money on money that was already taxed

conversely if you invest and lose a bunch, do you get a tax rightoff?

I think it is schedule D where you report capital gains and losses for the tax year. Long term gains, over 12 months, tax rates are lower than short term gains. If your net is a loss, then you can write it off up to 3k per year and carry any over the 3k to next year.

Dividends, ordinary and qualified, are reported on your 1040 and then a long work sheet is used to compute the tax on them. Qualified dividends are taxed at a lower rate than your regular income. Any foreign tax deducted from your dividends you get credit for dollar for dollar against the tax you owe. Been doing my own taxes for 69 years.