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So I have some money invested into a stock on Etrade. I am currently up 50% on that investment. YAY. I am going to be selling soon, I know that, which would make this a short term investment. If I Re-Invest 100% of that money into another stock do I pay Short Term Capital Gains tax still? Also, any other tax implications I should be aware of?
If I Re-Invest 100% of that money into another stock do I pay Short Term Capital Gains tax still?
$1000 invested becomes worth $2000, then cashed in...
you recover the initial $1000 investment plus the $1000 of short term capital gains.
Only that second $1000 is subject to taxation whatever you do with it or the first $1000 afterward.
no its not taxed at 15% max on short term . short term is taxed at whatever your tax rate is on all your income. long term is taxed up to 15%. depending on your overall income it could be zero ,5% or 15%.
Your profits on short term trades will be taxed at 15%.
Quote:
Originally Posted by mathjak107
no its not taxed at 15% max on short term . short term is taxed at whatever your tax rate is on all your income. long term is taxed up to 15%. depending on your overall income it could be zero ,5% or 15%.
why are you assuming short term is 15%?
That much I did know. I know long term is 15 and others are your income rate, which mine so happens to be 25% unfortunately, which is why I was asking.
When it comes to even long term capital gains not everything is black and white either.
even holding investments long term can be tricky at tax time. etf's that hold gold ,oil and precious metals directly get taxed as collectables no matter how long you hold them. that can be as high as 28%
folks are surprised to find the gold funds like GLD or oil funds like USO leave them with long term capital gains bills that are anything but 15% max.
some stocks can even be taxable when held in an ira because of complex rules about income from un-related sources. its called UBTI
if you own a reit and they own a race car as an example ,any money made with the race car may be taxable now even though its in an ira.
as much as we all think we know the answers some times there are always hitches somewhere so without knowing what you bought we will assume 15% max but it may not be.
Last edited by mathjak107; 08-17-2012 at 03:55 AM..
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