Questions tagged [capital-gains-tax]
Questions related to the tax liability from the appreciation of assets, e.g. stocks, mutual funds, real estate.
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Beginner capital gain tax on shares in Australia
I am thinking about depositing some of my money (500-800 AUD) into eToro and buy some shares, just for building good money habits. But I am unfamiliar with the tax implications that I have to face (if ...
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1answer
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Create LLC to invest and make big purchases?
If I want to do the following:
Make a few big purchases (laptops, cars, etc)
Invest in public and private equities, cryptocurrency, NFTs
Will a vehicle (e.g. LLC) be useful to accomplish all of ...
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1answer
49 views
When are premiums received for selling covered calls/naked puts realized?
For example, if I were to buy 100 shares in APPL today and sell a covered call option with an expiration year of 2022, would the premium that I receive be realized upon sale or when the option expires ...
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2answers
244 views
Is there no tax free way to shelter your savings from depreciation due to inflation like converting to any other unaffected foreign currency?
As I understand it, currency appreciation is treated as taxable income. However, if the currency you've converted to or any other currency you convert to isn't really appreciating at all and instead ...
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1answer
72 views
Deposit stocks into LLC
Does depositing stocks into a single member LLC incur a capital gain? The stocks will not be sold. I have searched for this but cannot find an answer.
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Managing Income to Facilitate Taking Tax-free Capital Gains
Regarding Capital Gains Tax in U.S.:
I am retired, and my only income is what I think is called "passive", e.g. RMDs, dividends, interest, and realized capital gains. My understanding is ...
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3answers
3k views
Is US capital gains tax progressive?
As has been answered on many questions, people pay 0% capital gains if their taxable income is below $40,000, 15% capital gains tax if between $40,000 and $441,450 and 20% if over $441,450. My ...
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1answer
60 views
Long-Term Capital Gains Tax Rate on or after Sept. 13, 2021 - Biden Plan
Under the Biden proposal the maximum capital gains are taxed would increase, from 20% to 25%. The new rate would be effective for sales that occur on or after Sept. 13, 2021.
But do the proposals ...
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2answers
144 views
When is it ok to switch from a FIFO cost basis to LIFO?
I live in the US and use a service to calculate my cryptocurrency capital gains taxes. I have previously always left it on the default FIFO calculation. But this time I was curious and made it ...
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1answer
61 views
UK Capital Gains Tax Increase
With rumours circulating about the UK CGT tax rates being brought inline with income tax I was wondering if;
Would the rate increase only take place from a future tax year e.g. 2022/23 onwards?
Or, ...
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3answers
194 views
Is it generally advantageous to offset capital gains with losses?
Related to these two questions. My question is, if I have $1000 in short-term capital gains and, for the sake of simplicity, say I would have to pay a 20% capital gains tax - $200. Is there any reason ...
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1answer
186 views
Does a non-US-citizen leaving US and returning to Australia avoid capital gains tax?
I am an Australian citizen who has lived in the United States for over 10 years on work visas, filing with the IRS and paying taxes. During that time I purchased shares in a US company, and those ...
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3answers
93 views
Do we get the "deferred tax" property like an IRA or 401(k), when we buy a mutual fund?
Although mutual funds (in USA) tend to move their position very slowly, but after 10 years or 20 years, that'd be more.
For example, if we buy a mutual fund in year 2000, and they invested in ...
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1answer
153 views
Tax loss-harvesting with Crypto
There are headlines floating around about enforcing wash sale rules for crypto capital gains and losses, this prompted me to look into tax loss-harvesting, and it turns out I don't understand it at ...
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0answers
39 views
Stepped-up Basis with a Revocable Living Trust
Scenario is this: son was trustee and invested extra savings in cryptocurrencies while father was alive and not able to make his own decisions. A few additional cryptocurrencies were purchased after ...
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2answers
120 views
Why [qualified] dividends are taxed differently from current income?
I am wondering what was the motivation to decouple taxation (USA) of short-term gains/income from dividends in 2003.
Before 2003, dividends were mostly taxed as current income, at a significantly ...
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1answer
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Is the cash from a buy out of mutually owned property taxable? Does capital gains apply? [closed]
My ex boyfriend (of 6 years) and I co-owned a property we bought less than two years ago.
Upon our split...
We agreed that I would refinance the property, and buy him out (approx 150, 000)-removing ...
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0answers
73 views
Brokerage Account and Non-Domiciled Status in UK
I have recently moved to the UK and want to move my IBKR Ireland account that was linked to my previous French residence status. The UK allows those with non-UK domicile to keep their worldwide income ...
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1answer
96 views
Significant Capital Gain -- how to pay quarterly estimate taxes correctly?
My understanding is if you are expecting to owe more than 2k in taxes you are supposed to pay quarterly estimate taxes.
If you don't you might pay a penalty interest rate on the taxes owed to the IRS (...
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0answers
68 views
How is long-term vs short-term capital gains calculated for USA resident aliens?
Let's say I am a foreigner who bought $1,000,000 worth of Microsoft in 2010.
I have just arrived in the USA on May/01/2021 and after 6 months pass the substantial presence test and qualify as a ...
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1answer
71 views
Do I need to file a tax return if my only income was from dividends and I am a foreigner?
I am not a US person for tax purposes. I do however own stocks in the US and therefore am subject to a dividend tax rate of 30% (1).
If the total amount of my dividends (my total taxable income) was ...
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1answer
123 views
if my capital gain is less than 801 euros per year, then do I have to file any taxes?
In Germany, there is what is called a capital gains allowence of 801 Euro per year, so if I make less than 801 in profit by selling a share, etc. or getting dividends, then I don't have to pay any ...
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0answers
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Canadian tax on capital gain multiple round of investment in the same company
My question is similar to this one (How to calculate capital gains on multiple trades of the same stock?), but lets say I have two objective with my investment. One short term, the other one long term....
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1answer
239 views
No need to pay tax on long term capital gains under 40K?
In the long term capital gains tax brackets, I saw that the tax rate is zero percent for Singles up to 40K.
So if I am single, and have capital gains under 40K, then I don't need to pay any taxes on ...
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3answers
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UK capital gains tax when I give asset to partner
I'm in the UK. My partner and I aren't married, and we live in separate houses. I'm in the higher tax bracket and he's in the normal bracket. I have a bunch of cryptocurrency, and I'd like to use it ...
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1answer
60 views
Slice and Dice vs Total market ETFs. How should I proceed from here
Currently, I have about $330k invested in ETFs. When I started investing I knew about lazy portfolios constructed using total market index funds like 3 fund or 4 fund portfolios. For whatever reason, ...
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1answer
68 views
How does capital gains tax work on a year when you move from one state to another?
I recently moved across the country (about 3 months ago) and was wondering if I am able to sell any of my equity without a huge tax penalty. I definitely acquired the stocks long before I moved (more ...
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1answer
49 views
Can I make use of my wife's Capital Gains Tax Allowance for gains under an EMI Share Option scheme?
My employer has granted me a number of share options under an EMI scheme. They also partnered with their brokers to allow us to exercise these options without needing to put up-front capital in to ...
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3answers
8k views
If my account only sells crypto, will I get taxed?
Will I get taxed if I do this?
Purchase $1000 USDT on Binance
Transfer to a crypto exchange outside the U.S., or transfer to a wallet address and use decentralized exchange.
Buy bitcoin, earned $1000,...
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1answer
685 views
For mutual funds, can you pay capital gains taxes even if you sustain a loss (as this article implies?)
https://www.businessinsider.com/uit-unit-investment-trust says:
UITs come with much lower expense ratios and also come with favorable
tax terms. Because of the way capital gains taxes are structured, ...
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2answers
92 views
Can capital gains be offset with transaction fees?
If you make a 2.5% capital gain on Dogecoin, but then pay that same amount in transaction fees, do you still have to pay capital gains tax?
Or can the capital gains be offset with the loss incurred ...
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6answers
4k views
Liquidate assets to buy house or mortgage?
My SO and I are planning on buy a house for about $900k. We have $200k in cash, and I'm considering selling several of my mutual funds (non-retirement) to finance the difference. These are funds that ...
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2answers
7k views
How do I avoid paying tax on a cryptocurrency gain that I have already lost?
I'm not sure if this question belongs here, but I'm super confused about how cryptocurrencies get taxed.
I invested $10,000 at the end of 2020. I made about 30 or so short-term trades in 2021 and sold ...
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0answers
69 views
VSP taxable capital gain, even when I didn't sell
I have VSP (ETF) in a non registered Canadian account. I am a Canadian resident and I am taxed there. I was surprised to see that I have to pay a capital gain tax on it because I hold shares, even ...
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1answer
83 views
Does it often make sense to sell an equity while it still is a short-term loss?
Let's imagine Juanita. Juanita pays taxes in the USA.
Juanita bought equity XYZ on January 1 and sold it for a profit of $100 a month later. Thus, it was short-term gain.
Juanita also bought equity ...
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0answers
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What date am I supposed to enter on Form 1116 Copy 1 (Foreign Tax Credit) in Turbotax?
As a US lawful permanent resident, I'm filing for my taxes in the US. I have some dividends in a non-US brokerage account. What date am I supposed to enter on Form 1116 Copy 1 (Foreign Tax Credit) in ...
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1answer
83 views
Do option spreads affect the holding period of the underlying stock?
Say I have 100 shares of ABC that are currently short-term.
If I sell an ABC put credit spread and close either or both legs within 30 days, would it reset the holding period on the 100 shares of ...
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1answer
113 views
Is it worth it to own precious metal ETFs inside a retirement account? [duplicate]
Is it worth it to buy precious metal (e.g. gold and silver) ETFs inside a retirement account (e.g. IRA, Roth IRA and 401(k)) to avoid the hassle of accounting for taxes on these trusts?
Accurately ...
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1answer
952 views
What is CGT rate if you have no taxable income?
gov.uk lists 4 tax bands:
personal allowance
basic rate
higher rate
additional rate
On its capital gains tax rate page, it explains the rates for:
"higher or additional rate taxpayer"; ...
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0answers
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If I already had taxes withheld, will I get a refund for investing in a Qualified Opportunity Zone (QOZ)?
When I sell any NSO or ISO (long and short term mixed) there are taxes withheld by the company/brokerage. In my understanding, investing in Qualified Opportunity Zones for a long term has benefits in ...
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1answer
57 views
Capital Gains tax for Rental House
I have a rental house in Seattle that has been rented for 12 years and is values about $485K. We bought a house in North Carolina last September and didn't know about being able to roll the proceeds ...
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1answer
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In the US, how to interpret the capital gains tax brackets
This is a question about the United States tax code, and in particular about the demarcation between brackets for long term capital gains. I recognize that the specific cutoffs and tax rates are ...
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1answer
91 views
Questions about an estate inheritance in Florida
My father passed away last month in Florida and left his estate to me and my older sister. The estate is simple - his house (paid off 20 years ago), some household possessions, and a couple of bank ...
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2answers
330 views
Billionaires, loans, and tax avoidance
Recent stories stemming from the ProPublica disclosure about billionaires and effective tax rates describes a strategy where billionaires borrow eye-popping sums of money, using their stock equity as ...
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1answer
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Are gains/losses on selling 12 months+ puts short- or long-term capital gains/losses?
If I sell a put and only close the transaction after 12+ months of holding that position, is it a long- or short-term capital gain/loss?
Some more context: For part of my portfolio, I sell some long-...
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1answer
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Should a person sell all/some/none of the stock they receive when their former employer goes public
Consider a person with the following financial situation:
An annual income in the 150-250 thousand $/year range
Savings in the 250-750 thousand $ range (invested in Vanguard ETFs, for example)
A ...
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2answers
75 views
Double taxation between Germany and US for dual citizen
Suppose I am a dual citizen of the US and Germany. Suppose further, that I currently live and work (employed by a german company) in Germany, and this will stay like this for the foreseeable future.
A)...
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2answers
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capital gain/loss sequence
sorry if this has been already asked but i'm having trouble translating from layman's language to IRS-speak.
Assume I buy a security (eg: SPY) in 2020 at $10, then buy another one share in January ...
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1answer
53 views
Utah, USA - Best Option to Minimize Capital Gains on Real Estate Sale(s)
Scenario
I bought a primary residence in Utah on 06/2020
RE in UT boomed (21% for my residence) and I'd like to sell
Additionally
I have property I've owned since 2007 I'd like to sell while the ...
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2answers
258 views
Money laundering and speculation gains
With all the crypto speculation I was wondering: How do countries differenciate between "dirty" money and speculation gains?
I know that in Switzerland you don't have to pay taxes on capital ...
