Questions tagged [capital-gain]
This tag is to be used for any question related to gain due to appreciation of capital. Typcially Capital gains are treated differently based on the geography and hence a country tag should ideally be used with this.
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How are long-term capital gains taxed if the gain pushes income into a new tax bracket?
First, my understanding is that the long-term capital gains tax rate is 0% for those whose marginal rate on ordinary income is 10% or 15%, and (ignoring the highest 39.6% bracket) the rate is 15% for ...
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"Cap gains exposure" of an ETF -- what does it mean?
Morningstar provides an ETF data point called potential cap gains exposure. For example, here is Vanguard's Europe ETF (VGK):
This value is negative 78% for VGK. I understand that this is a good ...
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What should I use as the cost basis for stock that was purchased before becoming a US resident?
I held some stock in Australia for 14 years and 4 months that has enjoyed some healthy long term capital gains in that time.
Recently I became a US Resident for Tax Purposes under the Substantial ...
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When I sell only a portion of my shares of a stock, which shares actually get sold
Two years ago, I bought 100 shares of XYZ.
Yesterday, I bought another 100 shares of XYZ.
Today, I sold 100 shares of XYZ.
Which 100 shares did I actually sell? If it were the 100 shares from 2 ...
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Can you step up your cost basis indefinitely via the 0% capital gains rate?
I had asked a previous question about moving money between mutual funds without taxation due to the 0% capital gains rate for those in low tax brackets.
However, I realized that this 0% rate actually ...
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4
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One-time estimated tax payment for windfall
I recently sold an investment that has generated a capital gain that is a substantial fraction of my 2020 income. My brokerage did not withhold tax (I think that is normal), but I am now materially ...
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Do I pay tax on a gain made from a currency exchange following a house sale in USA
I bought a house in the US in about 2010 and used it as a holiday home for my family (it was never rented out).
In around 2013 I sold the house, which after paying the estate agents fees and leaving ...
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Are there capital gains taxes or dividend taxes if I invest in the U.S. stock market from outside of the country?
Recently, I invested in some stock in the U.S. stock market. I was wondering:
Whether there are capital gains taxes if I sell stock? Do they take account into my foreign exchange loss?
Are there any ...
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ETF vs Mutual Fund: How to decide which to use for investing in a popular index?
How do you decide between investing in an ETF, vs. in a mutual fund, for the popular stock indexes? Trading costs, tax efficiency, capital gains?
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If I sell my house, will I have to pay taxes on the profit?
I am in the United States, in Colorado.
I purchased a house in July of 2013. It was in poor condition, so I spent the first two months repairing things before moving in. Now, 11 months after moving ...
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What are the "capital gains" my ETF is distributing to me alongside its dividends?
Today I noticed several ETFs I own, including SLYG, opened at a significantly lower value than they closed at yesterday (SLYG was $7.975 lower to be exact). Apparently yesterday a dividend was ...
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Shifting money between mutual funds
In the last 5-7 years, I've gradually invested money in several mutual funds via my bank (USAA). These funds now make up about a third of my portfolio. Initially I had invested in these funds ...
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Forex vs day trading for beginner investor
In essence, for a person that has not had any real experience with either (except for playing around in simulators like investopedia):
which one would an individual have the most potential to ...
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Is a divorce buy-out of a house a taxable event?
To be clear, this is a question about US Federal Taxes, and I live in Virginia, which is an equitable property (not community property) state. Additionally, I understand this is not a legal forum ...
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How to realize capital gains before going from non-resident alien to resident alien in USA
I am a foreigner and will move to USA next year (2016) and want to optimize my tax situation beforehand. I bought stocks in 2009 which appreciated in value but I would still like to keep them.
So my ...
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Further Understanding of Wash Sale Rules
First let's make sure I understand a Wash Sale:
Let's say I invest in 100 shares of ABC stock for $100 and after a week sell the 100 shares of ABC for $70, I've lost $30 which I can deduct from my ...
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Meaning of capital gain distribution
How is capital gain distribution calculated?
I wonder what differences and relations are between capital gain
distribution and capital gain/loss?
Line 13 of IRS Form 1040 asks for capital gain and ...
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2
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How are various types of income taxed differently in the USA?
From Dilip's reply
when you make a withdrawal from your Traditional IRA, no matter which
of your various IRA accounts you take the money from, part of the
money is deemed to be taken from the ...
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1
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cross-currency accounting
I am an American and pay taxes in US dollars. I have some holdings in another currency, for instance, the Euro. Obviously the funds have never been repatriated but this lack of tax event is messing ...
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I file 83(b) election, but did't include a copy of it in that year’s tax return
I filed an 83(b) election for stock I purchased in 2011 with the IRS with the 30 days window, but later did not include a copy of it in that year’s tax return.
The the purchase price and the fair ...
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Do I have to pay capital gains tax if proceeds were immediately used for another investment?
Let's suppose one sells an asset for a $200,000 profit after holding it for 10 year but then immediately sinks the entire sale price into another asset. Is one still expected to pay the capital gains ...
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How to account for Capital Gains (Losses) in double-entry accounting?
After taking an introductory financial accounting class, I decided to use GnuCash to keep track of my personal finances. I have 5 major accounts in my general ledger:
Equity
Currently only used to ...
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Treatment of web domain ownership & reselling for tax purposes: Capital asset, or not?
I run a web publishing business. I buy a large number of domains — and occasionally sell one, although not frequently. Some domains are developed into websites, which bring in advertising ...
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Benefits of Purchasing Company Stock at a Discount
The public company I work for offers a stock purchase plan at a 15% discount. There is an annual limit to how much each employee can purchase at the discounted rate.
To keep things simple assume:
...
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2
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Vanguard converted many investor shares to institutional shares for their target date retirement funds: why did it create a capital gain distribution?
I read (mirror without paywall) that the fact that Vanguard converted many investor shares to institutional shares for their target date retirement funds in September 2021 created a huge capital gain ...
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1
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If I get cash compensation for my stocks (following a merger for example) does that qualify for capital gains tax?
This is the scenario.
Say I buy some shares of a company X at a certain value. Some time after this, when I am still holding the stock, the company gets acquired by some company Y and as part of ...
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Should I wait to sell a stock (at a loss) that I have held for less than a year?
I currently hold some shares of a stock that I don't expect to regain much value. I bought this (at a higher price) about 8 months ago.
My limited understanding of the way capital gains taxes work ...
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Is it worth it to buy TurboTax Premier over Deluxe if I sold investments in a taxable account?
I sold investments in a taxable account in 2013, include shares from an employee stock purchase plan (ESPP). I have always used TurboTax and am planning to again, but I'm trying to decide which ...
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Do I have to pay a capital gains tax if I rebuy different stocks?
If I sell stocks and bonds and have a capital gain, and rebuy different stocks within a certain time frame, will I still be paying the capital gains tax from the original sale? ( just want to change ...
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If a company goes private, does it still count as a capital gain/loss?
This is related to "What happens to public shareholders when a public stock goes private?" I am pretty sure the answer is yes, but:
If you own stock in a public company which is bought out, does it ...
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How long do you have to live somewhere to be a resident for tax purposes?
My company is paying me with large amounts of equity pay. Theoretically*, I could delay realizing some of the gains on this equity and move to a place which, unlike California, does not charge 9.3% on ...
user296
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Does it make any sense for UK private investors to hold gilts directly and outside of a tax wrapper?
According to my understanding of gilts (which is in accordance with the answers here), private investors in UK gilts paying a premium on the redemption price (for example 2% T20s currently report a ...
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Taxes when exercising stock options in a privately held startup
Let's say I currently have the right to exercise some employee stock options (ISO) at a certain strike price. I have add these options for more than a year.
I read that the AMT tax applies on the ...
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Bitcoin Cost Basis Purchases
Suppose that a client purchases 10 BTC over a price range of $180 to $290 and transacts twice with his BTC for a total purchase of 2.7BTC. Two questions:
Based on this, the IRS taxes bitcoin like ...
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ACA health insurance: What will happen if my income ends up being way higher than I have on record?
I have a state subsidized health plan through Covered CA (California, US). My income fluctuates quite a bit from year to year, but I always do my best to guess what it will average out to be, and if I'...
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Short or Long Term Capital Gains for Multiple Investments
Say I make the following transactions:
Jan 5, 2011: I buy 100 shares of Stock X
Jan 5, 2012. I buy 100 more shares of Stock X.
August 1, 2012: I sell 100 shares of Stock X.
If I have this correct, ...
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Are dividends the same as capital gains?
Is dividends the same as capital gains? If not, what is the difference?
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Do you use the Cost Basis or the Amount Invested to compute a gain/loss for tax purposes?
A friend's Edward Jones financial advisor is using the Amount Invested and not the Cost Basis to compute the tax loss of selling a mutual fund.
I don't know anything about this stuff, but I'm pretty ...
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Capital gains on foreign investment?
An American "tax person" living solely in Canada must report any interest income earned in Canada on his/her US tax return. But, does this income include any gains or losses caused purely by currency ...
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What capital gains taxes do non-resident Canadian citizens owe?
I live in the Caribbean. I remain a Canadian citizen, but a few years ago I declared myself a non-resident for tax purposes. Assuming I have no income in the Caribbean, and I make $100,000 on stocks ...
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ESPP cost basis and taxes
I participated in a qualified employee stock purchase plan (ESPP) and the offering period just ended. I put in $5000 and got a 15% discount on the price at the end of the offering period (no lookback ...
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Asset Sale: Net proceeds to cash AND capital gains?
This is very simple but I'm having trouble figuring out how to account for the sale of an asset, in double-entry bookkeeping, in a way that shows the net proceeds going to cash AND recorded as a ...
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Tax consequences of short term capital losses
How do short term capital losses figure into taxable income? If someone has 50k of taxable income before considering capital gains (and losses) and a total of $2k in short-term capital losses, what ...
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Can I really pay 0% tax on unlimited long term capital gains if I'm in the 12% federal income tax bracket? [duplicate]
I'm afraid I'm missing something because the 0% tax bracket for capital gains seems too good to be true.
Everything I'm reading (e.g. "The zero percent tax rate on capital gains applies to people in ...
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Tax on Sale of Property
My uncle has sold his property and he deposited the money he received from selling the property. I like to know, if he keeps that amount in his bank account for an year, will that money be taxed? He ...
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2
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Why do ETFs usually generate fewer capital gain distributions overall than mutual fund?
I read on Investopedia that:
Comprehensively, ETFs usually generate fewer capital gain distributions overall which can make them somewhat more tax efficient than mutual funds.
Why do ETFs usually ...
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Does the creation/redemption of ETF shares by an AP when the ETF price deviated too much from its underlying securities cause cap gain distributions?
From Policy Spotlight: Authorized Participants (mirror), which Orange Coast- reinstate Monica referred me to:
If the price of an ETF share deviates from the value of its underlying securities, an AP ...
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1
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Strategy to offset a big one-time windfall or gain/income for tax purposes?
This is a question of curiosity, and not a situation I am in (although one day, I could hope!). I'm self-employed for a few years now, and don't make a lot in net profit, but enough to survive on in ...
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Preventing tax underpayment penalty
I had some short term capital gains in 2017 which resulted in underpayment penalties both in my Federal and State taxes. I have about $5K in crypto-related short term capital gains for 2018 to report ...
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Should interest on CFD positions be subtracted from UK capital gains?
The question title says it all. If I open a CFD position and hold it for a while, I will be charged interest. Can that be subtracted from the net gain or loss of the trade?
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