Dont forget about capital gains tax. if you buy
Post# of 1584
(Total Views: 310)
Posted On: 10/27/2017 12:11:31 PM
Re: derekdavis05 #1336
Dont forget about capital gains tax.
if you buy ABCD for $500 and end up making $5000 profit, you have to pay 15% tax if you held it for a year or longer, but possibly up to 40% (depending on your tax bracket) if you bought and sold in less than year.
Youre probably in the 10% to 28% bracket, so if you sold for $5000 profit, youll get taxed on $4500 @ ~25% = $1125 tax
$5000 - $1125 tax - $500 (original cost) = $3,375 profit
You also have to file with the IRS forms such as 1099-DIV, 1099-B, etc for capital gains and losses.
The cool thing is, the IRS has a rule for when we have bad investment years. If you end up losing money, you dont have to file it with the IRS up to $3,000. So, if you earned $4,000 in a year but lost $2,500 investing, you only have to claim $1,500 capital gain.
https://www.fool.com/knowledge-center/how-lon...rward.aspx
Sounds like a lot, but dont get overwhelmed. It's all doable. I had no clue what i was doing when i first started.
Good info to know:
http://www.investopedia.com/articles/00/102300.asp
Not investment advice
if you buy ABCD for $500 and end up making $5000 profit, you have to pay 15% tax if you held it for a year or longer, but possibly up to 40% (depending on your tax bracket) if you bought and sold in less than year.
Youre probably in the 10% to 28% bracket, so if you sold for $5000 profit, youll get taxed on $4500 @ ~25% = $1125 tax
$5000 - $1125 tax - $500 (original cost) = $3,375 profit
You also have to file with the IRS forms such as 1099-DIV, 1099-B, etc for capital gains and losses.
The cool thing is, the IRS has a rule for when we have bad investment years. If you end up losing money, you dont have to file it with the IRS up to $3,000. So, if you earned $4,000 in a year but lost $2,500 investing, you only have to claim $1,500 capital gain.
Quote:
If capital losses exceed capital gains, the filer is entitled to claim a deduction against the loss in the amount of $3,000 or the total net loss, whichever is less. When a net capital loss exceeds the $3,000 limit, it can be carried forward to future years.
https://www.fool.com/knowledge-center/how-lon...rward.aspx
Sounds like a lot, but dont get overwhelmed. It's all doable. I had no clue what i was doing when i first started.
Good info to know:
http://www.investopedia.com/articles/00/102300.asp
Not investment advice
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There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
Disclaimer:
As used herein, the terms "You" and "Your" shall mean you, individually, the reader, and each other party on whose behalf you may use the contained information at any time.
All references to "My", "I", and “The writer of the above post” shall refer to the creator of the username Joey68.
Do NOT invest unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.
There is a very high degree of risk involved in trading and investing. Past results are not indicative of future returns. I assume no responsibility for your trading and investment results. You should NOT rely on the information in the above post to make any decision or take any action.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are OPINION and NOT fact and are for entertainment purposes only. Do your own research and make your own decisions based on your own conclusions.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are NOT advice, and are NOT designed to substitute the expertise and judgment of a professional. It is your responsibility to seek investment advice during all stages of your investments. It is your responsibility to evaluate the accuracy, completeness and usefulness of the information in the above post.
I am NOT a professional.
I do NOT work for you.
My posts are NOT investment advice. I am not paid to post.
There is no correlation between the number of posts I write per day and your assumed success of a company.
It is NOT my responsibility to inform you of my own personal investment decisions.
It is NOT my responsibility to inform you when it is time for you to buy, hold, and/or sell a position.
I have no control over, and am not responsible for the actions of others who copy, store, edit, change, prepare any derivative work of or alter in any way any of the content provided in my posts.
Errors and Omissions expected. The writer of the above post accepts no liability or responsibility for any errors or omissions contained in the above post or contained within this Disclaimer.
The writer of the above post shall NOT accept any liability for the accuracy or completeness of the information contained in the above post, for any reliance placed by any person on the information contained in the above post, or for any damage or loss, however caused, in connection with the use or reliance on any information contained in the above post.
The above post may contain links to websites owned and operated by third parties. These links are provided for informational purposes only and are NOT endorsed by the writer of the above post. The writer of the above post has no control over the contents of any linked website and bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links.
YOU ACCESS ALL LINKS ENTIRELY AT YOUR OWN RISK.
The writer of the above post makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, or the information contained on these websites.
The writer of the above post accepts no liability for any damage or loss, however caused, in connection with the use of or reliance on any information, material, products, or services contained on or accessed through any such linked websites.
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
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