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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What are the tax consequences of loaning securities to one's broker aside from the dividends being paid as payment-in-lieu taxed as income?

I'm trying to understand the tax consequences of loaning securities to one's broker in the United States: The dividends of the loaned security are being paid as payment-in-lieu, which is taxed as ...
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If I loan securities to my broker, can this turn long-term capital gains/losses into short-term capital gains/losses?

E.g., if I purchase stock A on 2020-10-30, loan it to my broker from 2021-02-01 to 2021-11-20 and sold it on 2021-12-01 making a capital gain of X USD, will that count as long-term or short-term ...
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What would the IRS do if my portfolio went to near zero but I owe them tax?

I invested my entire net worth of 1 million dollars in stock XYZ on Jan 1st. The price of XYZ doubled by Dec 30th. I sold all of my shares on that day. My net worth is now 2 million, of which 1 ...
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Capital Gains taxes [duplicate]

I used to be an amateur options trader and lost several thousand dollars over the past 2 years. I understand how the wash rule works but here is my question. Let's say I lost 150,000 dollars over the ...
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Need access to funds that were earned & taxed prior to establishing LLC

In 2020, I worked as a sole proprietor and kept a 'business' account for my earnings. These were taxed twice - both as personal income and business income. Beginning 2021, I created an LLC (with me ...
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Santander scrip dividend shares - how to calculate base cost for UK capital gains tax

I own various Spanish shares and often receive scrip or stock dividends in lieu of cash. When I come to sell how do I work out the base cost of the shares for UK capital gains tax purposes? I know it ...
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96 views

How permissable is it to declare a summary of trades (verses detailed) when creating a tax return?

In a scenario where I have invested £10k in an *asset class over 5 years, in this time I have done 1000s of transactions on different exchanges and bought and sold many different assets, a lot of ...
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How to calculate cost basis for cryptocurrency gift?

USA Taxes. Here are two possible scenarios: Purchase price is known. Jan 10, 2020 my brother purchases $1,000 worth of crypto (let’s say BTC). Jan 15, 2020 my brother gives me all that crypto (but ...
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Are changes in the tax code for individuals usually retroactive to the beginning of the year, or not? [duplicate]

With the new administration, there is a potential for changes in the tax code. The one that interests me the most is the possibility that the rate for long-term capital gains (now 20%, maximum) will ...
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Will capital gains from one state offset capital losses from another state?

I moved in the middle of the year. I made capital gains from stock sale while living in NYC and then had capital loss from stock sale after I moved to NJ. Usually I could offset capital gains with ...
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Option trader with wash sales at the end of the year

I day trade options and I understand that wash sales at the end of the year can really screw you. I have not traded any position in 2021 that I traded in the last 40 days of 2020 in either my day ...
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Made large capital gains on Dec 31, 2020. Should I send a check to the IRS right-away earlier than sending my return for 2020? [duplicate]

In the US, I made large capital gains on the last few days of 2020. It was not so much anticipated, so I didn't send the IRS any estimated taxes for these gains. I am afraid of possible penalties for ...
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Wash Sale Question [duplicate]

It's Jan 1st and I buy 1 share of XYZ for $10. Jan 2nd I sell it for $9. Jan 3rd I buy it back for $9. Jan 4th I sell it for $8. Final loss: -$2 I understand this is a wash sale. But in my year end ...
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Offsetting capital gains with previous losses

I only trade options. Nothing exotic but just buying and selling CALLS and PUTS. So for example if I lost 30,000 USD trading options for the 2020 Tax Year. In 2021 I go on to profit 40,000 USD. Does ...
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When a company spins off a part of itself into a new company and I'm long the parent company will I automatically be long the spin off company?

*Disclaimer: This question is regarding taxes in the United States of America. I own stock in a company that announced at the end of 2020 that it will be spinning off a portion of its business later ...
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How will I be taxed on returns from crowdfunded debt?

I'm in the US and playing with investing with crowdfunded debt like miventure. (I'm not affiliated with them, just an example) When I end up getting yields from this I think it ends up in my e-wallet ...
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Capital Gains Term when purchasing more of the same asset [duplicate]

How does Capital Gains Term work in this scenario? Buy x amount of xyz stock and hold for over a year. Then buy z amount of the same asset and hold for less than a year. Questions: If I sell the ...
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Does closing an unqualified covered call option result in realization of gains on the underlying?

In general, in a covered call scenario, does any trade on the options contracts trigger a realization of capital gains on the underlying? I am not concerned about the reset of the holding period on ...
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Minimizing taxes on sale of second home

I purchased my original home many years ago when I was single. It is a very small condo unit and was much cheaper than I could get a "regular" house for at the time. Later I got married ...
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1answer
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Sale of land parcel separate from house

We just sold our house and vacant land, which we split into two parcels for sale to separate buyers. The land sale closed at the very end of 2020, while the house sale closed a couple weeks later in ...
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Should spouses filing together, who both have traded bitcoin, mix transactions when calculating FIFO cost basis?

Or should the two sets of transactions be kept separate for calculating cost basis and gains/losses? On a related note, what if one person filing alone has accounts at multiple exchanges, should the ...
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Is american call option exercise taxable event?

Since best to my knowledge the premium paid for the call option has to be added to the strike price to calculate the post exercise stock's cost basis, I assume that the answer is "No, exercise is ...
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162 views

Setting up a LLC in Wyoming as a non-resident to invest in stocks

I would like to open a LLC in the US in order to have access to some online brokers, like Interactive Brokers and Robinhood. I understand I will need to file an annual report with the state (Wyoming ...
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UK taxes and cryptocurrencies

I live and work in the UK. I work at the company, so my employer handles the income tax. I also own some stocks but I keep them in stocks and shares ISA, so I don't have to pay tax on them. Now let's ...
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How figure out cost basis when the same asset is located in different brokerage accounts?

I have two brokerage accounts Robinhood and TD Ameritrade. Here are my transactions for ABC stock: Jan 10, 2020 bought 10 ABC from Robinhood. ABC price $50 Jan 15, 2020 bought 70 ABC from TD ...
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Do I get a tax credit for my dependent’s short term capital loss?

My father is not working and is my dependent. I have him $5,000 cash as a gift in 2020. He “invested” it in stock market (bought an option for something), and lost it all. If he had any income, then ...
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how to transfer ownership of private illiquid shares and what is cost basis?

I own a few shares of a private firm. The shares are registered at Carta, but trading is not allowed. How can I transfer the ownership to my son so that the cost basis would be the price I bought them ...
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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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Losing money on a deep In the Money call

Suppose that I sold a call option at $1/share on XYZ at a strike of $100. The holder of the call exercised the option when the market price of XYZ is $110. Now I need to buy 100 shares at $110 and ...
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Long Term Capital Gains Tax Question

I understand that to be taxed long term capital gains tax you must hold your shares for more then a year before selling at a profit. My question is, does the 1+ year time frame get counted from the ...
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Hardly making money do I need to pay capital gains tax [closed]

I'm a college student and I've made around 5k in the past 3 months trading. Do I even need to pay capital gains tax? I don't know anything about taxes
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Closing stock position on Dec 30

When closing a stock position on Dec 30, 2020, with T+2 settlement, is the P&L booked for 2020 or 2021? TIA.
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Do I have to pay taxes on my capital gains when they're still less than my carryover capital losses?

I am based in the US. Let's say that in 2019 I bought some stocks and sold them in 2019 for a loss of $20k. So in each year starting from 2020, I am able to deduct $3k from my taxable income until all ...
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Does income from selling long term stocks fall under regular income tax bracket or capital income tax bracket?

If both brackets are the same, please let me know. I plan to sell some of my long term stocks and want to make an informed decision. My understanding of regular income tax is that it includes salary, ...
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Capital gains tax when selling an investment for bitcoin?

I saw this question. 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 ...
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4k views

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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Is short term capital loss worth more than long term capital loss?

Let's say someone has already realized a lot in short term and long term capital gains for a given year. And the same person has also unrealized short term capital loss that will turn into unrealized ...
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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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Is it possible to pay 0% Capital Gains tax if the account holder is the unemployed spouse?

Background: I am married and file joint tax returns. I am the sole income provider and my wife is a stay-at-home mom. Given that we live in a community property state and given the Unlimited Marital ...
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Are capital gains and losses paid per stock or cumulatively for that tax period? [duplicate]

I'm trying to understand taxes as they relate to investments in the United States of America. I've been reading online about capital gains/losses taxes and I'm a bit uncertain how taxes are determined ...
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Where can I see the local tax rates on capital gains?

Capital gains are taxed at 3 levels in the United States: federal, state and local. (to which one might have to add the Net Investment Income Tax (NIIT) if one's income is higher than some threshold.)...
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I received stocks from a spin-off of a firm from which I possess some stocks. Which date is used to determine if capital gains are short or long-term?

I read on https://seekingalpha.com/news/3636507-pfizers-upjohn-spinoff-completes-merger-mylan-to-form-viatris: Pfizer (NYSE:PFE) completes the deal to spin off its Upjohn business and combine it with ...
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Tax on unassigned Covered Call premiums deferrable by reducing cost basis?

I recently started selling covered calls and was curious how USA taxes for premium collected on unassigned covered calls worked. I was under the impression that such premiums will classify as short-...
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Reattribute capital gains reported under one SSN to another individual

I prepared to lend my mother money in anticipation of her buying a house. The money had been in an individual brokerage account in my name under my SSN; I transferred it to a new individual brokerage ...
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Required Minimum Distribution Tax Rates

As I understand it, if one sells Apple Stock in a 401K and takes the cash proceeds as RMD, then it is taxed as ordinary income and not capital gains. If instead the stock was not sold and taken out of ...
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If someone had purchased some stocks prior to leaving California, then sold these stocks outside California, do they owe any tax to California?

If an individual moves from California to another US state and had some RSUs granted before leaving California, then they'll owe some taxes to California (mirror): Allocation Ratio = (total workdays ...
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Best to harvest unrealized long term capital gains while income is low?

Suppose my 2020 income is $25k, and I have $15k in unrealized long-term capital gains in shares of company X. In 2021 and beyond, I expect my income to be $40k+. I consider the shares of company Y ...
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Can I avoid capital gains tax if I sell only the amount I put in and leave the rest?

I haven't found a definite written answer, probably because it is implied. However, I'd really love confirmation if anyone can verify my assumption, before I make a decision. Say I bought 10 shares of ...
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On Form 8949, is it okay to list a long-term transaction with an apparent holding period of less than 1 year ("silent" adjustment to holding period)?

The 1099-B from my broker includes long-term transactions with "date sold" less than 1 year after "date acquired". My inference is that this is because of holding period ...
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1answer
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Avoiding capital gains tax when exchanging one stock for another

From observation, it seems like an ETF fund manager can buy and sell assets while avoiding a capital gains tax. However, if I were to do that, I would be taxed each time I sold (and thus missing out ...

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