Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (17) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: pussinboots1 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121146  
Subject: Re: Loss of Job Date: 12/11/2005 5:46 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
how would a sell-off of say $5000.00 of simple stock be taxed? Would this count as straight income for the year?

Generally, no. First, you are generally only taxed on the gain---the difference between the original cost and the price at which you sell. Second, it depends on how long you've held the stock. Each state may have its own special rules, but the federal government taxes short-term (held less than 1 year) and long-term (held 1+ years) gains differently. ST gains are taxed like regular income; LT gains are taxed at a special rate (15%, I think). Here in Mass (where I live), the state charges an additional 5% tax on LT gains, 12% tax on ST gains.

How is capital gains tracked?

Basically, the gain is the difference between the cost and the sales price. But, you'll need to know more to file a tax return. Check out publication 550:

http://www.irs.gov/pub/irs-pdf/p550.pdf

Puss
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (17) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement