Questions tagged [capital-gains-tax]
Questions related to the tax liability from the appreciation of assets, e.g. stocks, mutual funds, real estate.
899
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How is 401k basis calculated? (Warning, wrong question.)
Normally if you sell one equity and buy another with that money, any gains or losses are reflected in your taxes at the time you do that rebalancing and you have a new cost basis on the new investment....
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Canada/Ontario Principal residence exemption
I bought my house in 2013 and have been renting it to present time. I never lived in it. I am thinking of starting to live in the house in 2025 and 2026 and then sell it in 2027. What do I have to do ...
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RSUs: Can the cost basis for sell-to-cover transactions be calculated using FIFO, or does it have to be LIFO?
My RSU vesting happens with an associated sell-to-cover transaction for tax purposes.
The page on my brokerage (E-Trade)'s website shows the cost-basis for this transaction as though it was calculated ...
2
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1
answer
135
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How to disburse capital gains between two people with minimal taxes?
My daughter and I bought a house together in 2022. I contributed money for the down payment. We have paid equally all of the mortgage and expenses.
We are selling it now, it is on the market. I am ...
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1
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Can Schedule A medical expenses offset long term capital gains?
My elderly parents have recently started incurring very significant expenses for in-home care. They are considering selling a vacation home with a long-term capital gain to cover their caregiving ...
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1
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Delay Self Assessment Return
I am a international student holding a residence visa.
A month ago, I began my degree program, and I have some income from a non-ISA savings account. I recently noticed that the deadline for filing my ...
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1
answer
57
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espp tax calculations when loss does not exceed discount
I have participated in four ESPP grants at my current company and am trying to do some tax planning. I've read the following as research:
https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-...
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If my company is going to be acquired for $50m, how can I avoid high taxes? [closed]
Let’s say for example I have a company that is going to be acquired for $50m and I own half it as a cofounder.
How can I avoid a large tax hit?
I know someone who received $25m from an acquisition and ...
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2
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Why is an ETF that generates less capital gain distributions better for some investors?
Question
From an investor prospective, why an ETF that generates less capital gain distributions to the investors is better than one that generates more distributions?
Note, I am not talking about &...
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Can you sell shares before ex-dividend and buy back after, to replace 'dividend income' by 'capital gains'?
Note: this is the opposite direction than most sell/buy questions over dividend day.
Here is the situation: I have large losses from unrelated trading activity, and can only deduct 3000 per year from ...
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Is holding US stocks through a US broker enough to have to report to US taxes
I was never a US resident and I don't have a citizenship or green card.
However, I would like to invest via an American broker, simply because they have the best commissions.
I am not sure which US ...
3
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1
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235
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Avoiding penalties and interest on long-term capital gains taxes without paying estimated taxes
I have a question about tax penalties and interest
Suppose my total tax due was 30,000 last year, and all of that was due to employment.
Suppose this year I expect to have about the same 30,000 taxes ...
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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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Working around IRA contribution limits using options
Lets say I have a taxable brokerage account with $1k of shares for ABC. I'm reasonably sure ABC will go down over the short term but don't want to sell it so I buy puts.
But since I just opened a Roth ...
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2
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1
answer
440
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Can I include the costs incurred for adding landscaping to the cost basis of my house?
Although there is a $250,000 gain exclusion for those who qualify, it's probably a good idea to track costs beyond original purchase price to track a more accurate cost basis. I've read that expenses ...
2
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1
answer
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Taxes for selling property in foreign country
I've been owning half of the house in Russia before I immigrated to the US and I recently inherited the 2nd part of it. Now I'm thinking to sell it.
Should I pay any taxes in the US if I sell it?
I'm ...
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Figuring out the tax basis of property inherited 15 years ago
In 2008 my father died. 15 years later I just sold the property that I inherited from him. Now I need to pay capital gains on that property, but what do I use as the tax basis?
I could just assume the ...
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Calculating Foreign Exchange Capital Loss on Margin Loan Repayment
Let's assume I convert 10,000 CAD to 5,000 USD and hold it for one year. During that year, I also make some trades using money borrowed from the brokerage firm (i.e. trading on margin). Afterward, I ...
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Which stock to sell?
Situation
I am based in the USA and own two stocks from the same company, one that I bought at a price of $50, and one that I bought at a price of $70. I have held each one for over a year, to avoid ...
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Built a house on property. Florida residence when can we sell the property and avoid fed capital gains?
Sold primary house in 03/2021, and then bought land in 05/2021, address assigned same month. Lived on the property in RV. Built a house on the property. Florida residence, when can we sell the ...
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Can I also use my US capital losses in Italy?
I’m a United States (US) citizen and a US resident and have been both my whole life. I have (1) US source capital loss carryover from previous years and (2) US source unrealized capital losses.
Let’s ...
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In a non-community property state, which shares get stepped-up basis when held jointly by a married couple and one spouse dies?
Let's say a married couple lives in a non-community property U.S. state. They have a taxable joint brokerage account and periodically buy shares of stock. One spouse dies so the other spouse is ...
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Can I 1031 split real estate, then move into both sequentially?
I have an investment property where I have a capital gain of approximately 700k with no mortgage.
I understand that you can move into an investment property, convert it to your primary residence and ...
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1
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575
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Can ETFs be broken down into the stocks composing them without paying capital gains tax?
I own some bad index funds. I would like to decompose them into their stocks, and just hold these (maybe doing further alchemy and replacing some of them with other index funds).
Is this possible ...
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An a person without a US citizenship, do I always pay a capital gains tax according to the laws of the country I made the gains in?
I lived in Germany my whole life. I don't have a US citizenship.
I invested in S&P 500 via the American "Interactive Brokers" for the last 4 years.
Now I want to move to New Zealand.
I ...
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2
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65
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How to calculate capital gains cost basis with delayed forex conversions when trading in USD in Canada?
Scenario 1: Immediate FOREX conversion
➤ On June 1st, I purchased stock ABC with a cost basis of $100,000 USD. The exchange rate on the day of the trade was $130,000 CAD.
➤ On June 10th, I sold stock ...
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1
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101
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FIFO caused my ESPP shares to be sold instead of my vested RSUs. Should I sell the stocks in my portfolio labeled as RSUs ASAP?
10 RSU shares vested February 20 on Fidelity.
I immediately distributed them using net share tax settings.
As soon as they hit my individual portfolio, I sold 10 shares, not knowing that I was using ...
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How is Canadian capital gains tax calculated when I trade exclusively in USD?
99% of my entire net worth is denominated in USD, and I only trade in USD stocks & bonds.
Does Canadian capital gains tax only trigger when I attempt to convert those gains/losses into CAD? In ...
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What happens if the deemed acquisition price is lower than the actual acquisition price when establishing Canadian residency?
According to the Canadian Revenue Agency:
Deemed Acquisition on Becoming Resident:
A taxpayer who becomes a resident of Canada at any particular time in a taxation year is deemed under subsection 48(...
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Can non-resident alien in USA accept money from dependent wife in a US saving account without incurring tax?
I am a non-resident alien in USA on J1 visa. My wife and I are both Indian citizens. Recently my wife moved from her previous job (in Spain) to live with me as dependent J2. Since she does not have ...
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When you sell a business. Is it a long-term or short-term capital gains tax?
Let's say I start my own small business selling hot dog stands on Jan 01, 2023, and sell it three months later for $50,000. Would my $50,000 be subject to long-term or short-term capital gains tax?
...
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tax implications of reinvesting capital after selling house in india
Say Person X is an NRI who has held a property in India for the past few years (greater than 3 years).
sells property for a profit of 100 units
As an NRI 100 units of profit gets taxed at 20%. 20 ...
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1
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inheriting (and selling) a house via a trust vs being named on the title
Apologies if this is a silly question. I am quite naive when it comes to taxes.
I am a dual US/UK citizen. My wife is a UK citizen. We reside in the UK.
My mother is a US citizen residing in the US ...
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1
answer
420
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Income tax on selling stock bought at various times
Say I have 24 shares of stock X, and I got these shares by buying 1 share every month for 2 years. If I now want to sell 1 share of X, how will I know if it is a share I bought 2 years ago, 12 months ...
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2
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Is a wash sale that bad?
Using the following as an example, for any equity (stock):
1/15 BUY 10 @ $100
6/15 BUY 5 @ $50
6/20 SELL 10 @ $30
6/22 BUY 99 @ $20
Are 5 shares a wash sale, or 10 shares, 15 shares, or 99 ...
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2
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1
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How to calculate the cost basis of a company share that was received in an acquisition? (UK)
This is something I've been wondering about for some time now, and I think it's best if I explain my question through an example (I'm going to make this example hypothetical and very extreme just to ...
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0
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CAD-denominated investments from the US [closed]
I am a Canadian resident in the US who is not a resident/tax resident of Canada. I find myself sitting on some excess CAD. I would like to invest it into a CAD-denominated asset instead of converting ...
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3
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235
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Selling then rebuying stock to avoid long-term capital gains
Suppose someone has a lower long-term capital gains tax rate than their short-term capital gains tax rate, but they also have large short-term capital losses. Is it legal to sell stocks to materialize ...
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1
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tax treatment of naked put LEAPS held more than one year
Say I sold ONE,(January 21,2022 AMZN 3100 PUT) for $506.25 on September 16, 2020 and bought it back on January 21 2022 for $94.04. Is the Gain Long Term or short term ?
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How to calculate profit of stock sale without original purchase price
I have a question about calculating profit for taxes after selling a stock, in the US. I have 20 shares of Microsoft stock that I bought a long time ago, probably in the late 80's. I have no idea what ...
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Should capital losses on RSUs sold for taxes be matched against retained shares in the original vest or only future vests?
My company uses a "Sell to Cover" strategy in order to withhold money for taxes.
That can result in the following situation:
I vest 100 shares on Day 1.
The company sells 22 of these 100 ...
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How can I take a $250,000 capital gains tax exemption on a land sale adjacent to my RENTAL house property?
This is a narrower question than a question about the sale of land adjacent to a PRIMARY residence.
Can I take the $250,000 tax exemption on the sale of my land adjacent to my rental property (not my ...
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1
answer
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UK resident selling a house in Italy
I purchased a house in Italy for €250,000 in 2014. At the time, I was a student in the UK, and I didn't officially transfer my residency to the UK. I now (2023) work and live in the UK (and I've been ...
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What is the date of acquisition for the purpose of declaring capital gains on sale of property (publicly traded stock) ? (Canada)
I have capital gains and losses to report on my Canadian tax return to the CRA (I'm an individual, not a corporation). My tax-filing software (Ufile) is trying to help me generate form 5000-S3 (...
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1
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Can I combine lines on my 1099-B if the basis and dates are the same?
Suppose I have multiple 1099s, and there are several transactions with the same basis per share, proceeds per share, acquisition date, and disposition date. Can I combine them on form 8949?
For ...
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1
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Wash Sale Basis Adjustment When There Are More Replacement Shares
Consider the following scenario:
On Jan 1 I bought 10 shares of XYZ for $10 each on Jan 1, and sold them for $8 each on Jan 2, resulting in a loss of $20 ($2/share)
On Jan 10 (less than 30 days ...
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3
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484
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better understanding wash sale rule
This is for USA tax purposes.
I find wash sale rule simultaneously a simple and complicated concept. I kind of understand overall idea, but miss the details. Surprisingly, I couldn't find many ...
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1
answer
64
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When does tax have to paid with EMI share options?
I have vested share options in a small company because I joined when it was an early stage start up. The options are in an EMI (Employee Management Incentive) scheme. The company is not planning to ...
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2
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0
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176
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Selling property abroad and transferring the money in the UK
I am a UK citizen and there is a property in Greece that my family wants to sell. It is an old property which I (and three more family members) inherited and paid taxes normally. The facts:
The ...
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2
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Do RSU / ESPP Sales Go On Form 8949 As Capital Gains And Losses?
I have a series of RSU + ESPP sales within the past calendar year. All RSU and ESPP that have vested and been awarded have been reported as ordinary income via a W2. My company uses ETrade for ...
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