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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31
votes
2answers
46k views

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 ...
15
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3answers
2k views

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 ...
13
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3answers
6k views

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 ...
12
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3answers
26k views

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 ...
11
votes
3answers
809 views

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?
11
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2answers
4k views

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 ...
10
votes
1answer
2k views

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 ...
10
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3answers
650 views

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 ...
10
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2answers
79k views

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 ...
10
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2answers
3k views

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 ...
9
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4answers
31k views

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 ...
9
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2answers
723 views

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: ...
9
votes
1answer
113 views

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 ...
9
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2answers
670 views

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 ...
8
votes
2answers
958 views

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 ...
8
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3answers
2k views

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 ...
8
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1answer
175 views

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?
8
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3answers
903 views

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 ...
8
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2answers
1k views

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 ...
8
votes
3answers
636 views

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 ...
8
votes
1answer
1k views

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 ...
8
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1answer
157 views

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 ...
7
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2answers
1k views

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,...
7
votes
1answer
1k views

“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 ...
7
votes
2answers
15k views

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 ...
7
votes
1answer
11k views

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 further. If I sell it now, will Canada ...
7
votes
2answers
11k views

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 ...
7
votes
2answers
323 views

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 ...
6
votes
3answers
14k views

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 ...
6
votes
1answer
669 views

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 ...
6
votes
2answers
364 views

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). ...
6
votes
1answer
320 views

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 ...
6
votes
1answer
3k views

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 ...
6
votes
1answer
2k views

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. ...
6
votes
1answer
2k views

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 ...
5
votes
2answers
3k views

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 ...
5
votes
4answers
15k views

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 ...
5
votes
2answers
4k views

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 ...
5
votes
1answer
163 views

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 ...
5
votes
4answers
23k views

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 ...
5
votes
1answer
913 views

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,...
5
votes
2answers
110 views

What are the tax implications of improvements to a home that's not primary residence?

How are expenses related to fixing up an investment property treated? Are they deductible? What is a qualified expense? Are they deductible from income, or only used to offset capital gains? USA rules,...
5
votes
2answers
585 views

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 ...
5
votes
1answer
140 views

Selling my house and have been taking home office deduction. What will I owe?

I'm in the process of selling my house. I took a home office deduction a couple times, and I am concerned about what I may be responsible for at tax time. My profit from selling the house is nowhere ...
5
votes
1answer
5k views

How to report adjustment to basis of sale of a publicly traded partnership?

I've received a K-1 from a publicly traded partnership, which lists Cumulative Adjustments to Basis. I sold some of the shares in this PTP in 2011, and for each lot, there is an amount in this ...
5
votes
3answers
449 views

Can time invested be considered capital?

If a business owner works for no salary, but puts time and effort into the business, can those hours be considered a capital investment? If so, is there a term for that kind of work? Example 1: A ...
5
votes
2answers
19k views

How to get money from bangladesh

The situation Recently we sold some property in Bangladesh. It gained a nice sum of money, but now we are a bit stuck on how to get it out. We can be flexible but prefer to transfer it to a west ...
5
votes
1answer
187 views

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 ...
5
votes
1answer
395 views

Correct way to amend tax return as a result of not correctly reporting gains on sale of private stock based on Installment method?

Background. I owned series A and series B preferred stock in a private company that merged with a public company in 2015 giving rise to large gains.The merger closing date occurred in September 2015 ...
4
votes
2answers
5k views

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 ...