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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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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4
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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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Determining current value for real estate for inheritance purposes
It's my understanding that when someone dies the person who inherits their property has the value of that property reset for capital gains purposes. That is, if the property was purchased for $10,000 ...
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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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2
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how do capital gains work if you don't know the original purchase price?
So let's say my grandparents bought me 1,000 shares of some stock. They used the wrong address, however, and I never knew about it until after they died. The state got the stock and then, a bunch of ...
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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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3
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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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3
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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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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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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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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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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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ESPP strategy - Sell right away or hold?
I participate in my company's ESPP. Unlike most ESPPs, ours purchases shares on a MONTHLY basis, the price being the average on the last day of the month. A dollar contribution is taken out of each ...
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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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What to do with dividends and capital gains from Roth IRA. Reinvest or Transfer to market settlement fund?
I am 22 and just opened a Roth IRA from Vanguard. I am putting 5.5K a year but I was wondering if someone can give me pros and cons for what to do with my dividends and capital gains?
The two options ...
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Tax implications of 401k regular rebalancing vs a retirement target fund
This question is in the context of securities held within a 401k.
As I understand it, one of the advantages of a retirement target date fund (like Fidelity's FFFHX, which I am in 100%) is that the ...
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1
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How many days do I have to hold a stock before it is considered a capital gain by the CRA?
I want to sell a Canadian stock from my investment account that I bought a month ago. The stock makes about 20% gain and I am afraid it might go down in the future. If I sell it now, will Canada ...
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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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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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1
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Can capital gains or rental income be used for contributing to a retirement account?
If my wife is considered a real estate professional, and she buys a house to flip, can the gain be used to fund a tax retirement account i.e. SEPP or a 401(k)?
Can the rental income from rental houses ...
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Growth of unrealized gains in tax-managed index funds
Tax-managed index funds defer capital-gains distributions by, among other things, offsetting capital gains with losses and deviating from their underlying indexes to avoid having to sell appreciated ...
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3
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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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What are the differences in taxes rules for specialty ETFs such as GLD (Gold ETF) and general ETFs?
I am in the 15% tax bracket. In terms of short term hold and long term hold, I want to know what the differences in taxes rules for specialty ETFs such as GLD (Gold ETF) and general ETFs as are?
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3
answers
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Changes in Capital Gains Tax in the US - Going to 20% in 2011?
I have made substantial gains in the stock market this year on stocks that I have held long term (> 1 year).
I understand that when I sell this stock, I will pay 15% capital gains tax.
I have heard ...
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3
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436
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Is it tax-inefficient to receive and pay rent?
Suppose I own a home and live in it. Then I realize I want to move to another part of town that is closer to work. But this is temporary because I don't know what my job will be in 5 years.
So I rent ...
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Is there anything I can do to prepare myself for the tax consequences of selling investments to buy a house?
I have about $500k in Vanguard funds, in a regular (i.e. taxable, non-retirement) account. I've been building these positions over the past 12 years or so.
There's a chance that I'll want to buy an ...
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Is it a good idea to sell prior to moving to a higher tax state?
For the purposes of this question, suppose:
I'm moving from a state with 0% capital gains tax to a state with 5.25% capital gains tax;
All capital gains are long-term;
I have some mutual funds that I ...
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WHEN should I realize capital gains before going from non-resident alien to resident alien in USA?
I have read this post (How to realize capital gains before going from non-resident alien to resident alien in USA) and would like to ask a follow-up question.
It's understood that capital gains ...
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2
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How are taxes tracked on investments which have already had tax paid on them?
I made some investments years ago and took out an amount in 2016 to invest with on my own. Let's say the amount was $1,000 US dollars.
I paid capital gains on this amount which was 15% so of my $1,...
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1
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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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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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2
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Tax consequences of partially selling a stock
I bought a company for $71 5 months ago. It is now over $100 but I am afraid it might fall.
I plan to sell only enough to get back the money I put into the stock and own the gained amount until it is ...
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Taxes on selling stock
If I want to sell some stocks to buy other stock do I have to pay taxes on the profits from the sale of the first stock?
How long can I keep the cash in my brokerage without having to pay taxes on ...
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how do capital gains work if the property that you purchased was modified since it's purchase?
Let's say you purchase 10 acres of land 30 years ago for $10,000 and that 10 years ago the city declared eminent domain on a portion of the land and built a road through it. Now you own two tracts of ...
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2
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Long-term capital gain taxes on ETFs?
Sorry if this is a very novice question. I couldn't find it by searching here or Bogleheads (I'm not really a 100% Boglehead either).
Let's say I hold $30,000 in an ETF called BMT (Big Mike's Tech). ...
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1
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Gains/loss calculation for staggered buys & sells?
I am completely new to this, so understand that I realize that I still have a lot to learn before I invest any significant sum of cash. I've bought a few shares of stock (let's call it ABC) through ...
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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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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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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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Capital gains tax when I sell my home if I use a portion of it for an AirBnB
We live in Virginia. We own a nice-sized home and now that the kids are gone we are living on one floor, except for the laundry room. We are considering renting out the downstairs as an AirBnB space. ...
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1
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Can capital gains from employee stock options be transfered to a TFSA to avoid taxes?
In a scenario where, for example:
An employee exercised a "same-day-buy-and-sell" operation on his employee stock options. He ends up making a profit / gain of $10K. He already has a yearly salary of ...
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Will capital gains affect my tax bracket?
I am marginally in a lower tax bracket based on W2 income. If I add capital gains from stock sales, then this tax bracket would go higher. Does capital gains actually affect your tax bracket or are ...
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How do you determine purchase date when there are multiple stock buys?
I buy 5000 shares of ABC on Jan/01/22 for $100,000 ($20.00/share)
I buy 2500 shares of ABC on Feb/01/22 for $100,000 ($40.00/share)
I now have 7500 shares with a cost basis of $200,000 ($26.66/share)...
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4
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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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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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4
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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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Can salary sacrifice pension contributions move you into a lower tax bracket for Capital Gains Tax?
If a person is paid over £45,000 per year then they are a Higher Rate taxpayer and pay Capital Gains Tax at 20%
If that person pays into their salary sacrifice pension and reduces their taxable ...
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Do I need to file a tax return as a dependent if my net capital gains are close to $0 but my trading volume is very high?
As per the IRS tax code, it states that a single dependent whose unearned income is less than $1100 and whose earned income is less $12,200 does not have to file a tax return. I am a student, and I ...
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Is it possible to withdraw your cost basis from an investment to minimize capital gains taxes?
Say you invest $10,000. In a couple of months, that $10,000 investment is now worth $50,000. You decide you want to take out your initial investment of $10,000 back into cash and let the remaining $40,...
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