Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: stormyout Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: capital gains ? Date: 12/14/1999 4:09 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
If I sell all of a stock, keep the money in my brokerage account, and buy the same stock back at a later date (hopefully cheaper)is there a cut off date regarding paying capital gains on it? I heard if you buy it back within 30 days you don't have to pay. Is this correct?
Print the post Back To Top
Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23063 of 121585
Subject: Re: capital gains ? Date: 12/14/1999 6:19 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I heard if you buy it back within 30 days you don't have to pay. Is this correct?

Only if you sell it at a loss. If you then buy it back within 30 days, it is a wash sell and you do not get a capital loss but have to subtract the loss from your new basis when you buy the stock again. You should look for Wash Sales in FAQ and do a search. There have been a number of threads about it.

If you sell it at a profit, you must pay tax on the gain, either short term capital gains taxed as ordinary income or long term capital gains taxed at a maximum of 20%. There is no "cut off date" on gains nor can you reinvest to defer the taxes.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement