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I'm relatively new to investing, and I'm an II and SA subscriber, but I have a question related to taxes that up to this point in my life I've never had to deal with. Any explanation/advice would be helpful.

As far as capital gains are concerned, how do you figure out on what amount you owe tax? Is it the price you sold the stock for minus what you paid for it, or is it on the full amount of the sale? Also, what if I sold a stock this year that I bought last year? Does the same answer still apply?

Finally, in the same way that you're allowed to contribute to an IRA up to April 15th of the current calendar year for tax considerations of the previous year, can you do the same with capital gains/losses? That is, if I sold a stock this year (up until April 15) that I bought last year, for a gain, can I apply the tax on the gain to my 2006 return, or do I wait and apply it next year to my 2007 return?

These assume purchases and sales in taxable accounts. I'd appreciate anyone's feedback. Thanks!

PT
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