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47 votes

Do I have to pay capital gains tax if proceeds were immediately used for another investment?

Buying another asset makes no difference, you still owe capital gains tax on the sale. What cash should you use? If you didn't have other cash to pay the taxes you should have kept some of the cash ...
JohnFx's user avatar
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42 votes
Accepted

When I sell only a portion of my shares of a stock, which shares actually get sold

At the time of the sale, you can designate what shares you want sold. The IRS requires that your broker verifies that those specific shares were sold. The IRS calls this "specific share ...
Bob Baerker's user avatar
  • 76.8k
24 votes

Do I have to pay capital gains tax if proceeds were immediately used for another investment?

It seems to me you are thinking of the 1031 Exchange which offers deferral of the gain if the proceeds are all invested in the next property. This is for (rental) real estate, not stocks. A similar ...
JTP - Apologise to Monica's user avatar
21 votes

Do I have to pay capital gains tax if proceeds were immediately used for another investment?

You didn't mention what the asset was. For non sheltered securities, their sale is a tax event whether it's a realized gain or loss regardless of what the holding period was or what you subsequently ...
Bob Baerker's user avatar
  • 76.8k
17 votes
Accepted

How are taxes tracked on investments which have already had tax paid on them?

Assuming your investments aren't in any kind of tax-advantaged account (like an IRA), they are generally not tracked and you indeed may pay more taxes. What will likely change, however, is your cost ...
BrenBarn's user avatar
  • 24k
17 votes
Accepted

Are dividends the same as capital gains?

They are different. Dividends are profits of a company that are shared with stockholders. Capital gains are the net profit you got from selling an investment.
JohnFx's user avatar
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16 votes
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What are the "capital gains" my ETF is distributing to me alongside its dividends?

Although an ETF trades like a stock, it is really a stock mutual fund. And like all mutual funds, when you invest there are two ways that you realize a capital gain. As you mentioned, you have a ...
Ben Miller's user avatar
  • 116k
14 votes
Accepted

One-time estimated tax payment for windfall

If your total tax withholding (from your paychecks; not including estimated taxes) reaches 90% of your tax liability for this year, or 100% (110% for high earners) of your tax liability for last year, ...
user102008's user avatar
  • 17.3k
13 votes
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Can we all be rich together?

This is what sovereign wealth funds do. How the wealth is shared becomes a political question, for example: Alaska Permanent Fund eliminate state tax and give an annual dividend to residents ...
user662852's user avatar
  • 8,409
11 votes

Can we all be rich together?

I'm wondering, why not invest all together in the stock market with a single account? Mutual funds already enable individuals to interact with the market collectively, so many people are already ...
Hart CO's user avatar
  • 70.6k
11 votes
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How do you determine purchase date when there are multiple stock buys?

Brokers default to FIFO (first in, first out), so unless you instructed your broker to sell the shares purchased on 2/1/22 they will have sold the ones you acquired on 1/1/22. Since the holding period ...
Hart CO's user avatar
  • 70.6k
9 votes
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Determining current value for real estate for inheritance purposes

My question is... how is this new value determined? Does it go off of the tax appraised value? The tax assessors values are based on broad averages and are not very useful in determining actual ...
Hart CO's user avatar
  • 70.6k
9 votes
Accepted

Can salary sacrifice pension contributions move you into a lower tax bracket for Capital Gains Tax?

This is explained at https://www.gov.uk/capital-gains-tax/rates There's no cliff-edge where your entire capital gain suddenly changes tax rate because you changed your income tax band. If on the ...
GS - Apologise to Monica's user avatar
8 votes

United States capital gains tax for nonresident Citizens?

It's worse than that. You'll be charged US tax on all of your income, capital gains and other. Depending on where you are living, the tax you pay in that other country may (or may not) be used to ...
ChrisInEdmonton's user avatar
8 votes

Are dividends the same as capital gains?

A dividend represents a portion of a company’s earnings and the amount that you receive depends on the payout rate and the number of shares that you own. A capital gain is the profit from purchasing a ...
Bob Baerker's user avatar
  • 76.8k
7 votes

How are various types of income taxed differently in the USA?

Long-term capital gains, which is often the main element of investment income for investors who are not high-frequency day traders, are taxed at a single rate that is often substantially below the ...
Joe's user avatar
  • 35.8k
7 votes

What is the relation and difference between capital gain distribution and capital gain?

Capital gains are when you sell an asset for more than it was purchased for. This can occur when you sell a house, collectible, stocks, bonds. A capital gain distribution is when the mutual fund, or ...
mhoran_psprep's user avatar
7 votes
Accepted

Stock return based on percentage

would you earn $600 or $1600? You would have $1600, and your earnings would be $600. That's the only answer it could be, since if you start with $1000 from your savings, then it's impossible for ...
RonJohn's user avatar
  • 50.7k
6 votes
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Stocks taxed just for selling, or just when withdrawing?

Outside of a tax sheltered IRA or 401(k) type of account your transactions may trigger tax liability. However, transactions are not taxed immediately at the time of the transaction; and up to a ...
quid's user avatar
  • 49k
6 votes
Accepted

How do I determine if sale proceeds from an asset are taxable?

If it's fully expensed, it has zero basis. Any sale is taxable, 100%. To the ordinary income / cap gain issue raised in comment - It's a cap gain, but I believe, as with real estate, special rates ...
JTP - Apologise to Monica's user avatar
6 votes

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?

The problem you face is that if other people/companies file forms related to your transactions that make it appear that you should file, then you have to file to be able to prove you owe no income ...
mhoran_psprep's user avatar
6 votes
Accepted

Vanguard converted many investor shares to institutional shares for their target date retirement funds: why did it create a capital gain distribution?

You need to quote from the document. At the end of 2020, Vanguard reduced the minimum investment in its institutional Target Retirement funds to $5 million from $100 million. That set off an elephant ...
mhoran_psprep's user avatar
5 votes

How do I determine if sale proceeds from an asset are taxable?

Profit = Sale price - Basis Basis = Purchase price - any depreciation taken, including expensing it.
Loren Pechtel's user avatar
5 votes

Meaning of reinvestment

1) When it says "an investment or mutual fund", is a mutual fund not an investment? If no, what is the definition of an investment? A mutual fund is indeed an investment. The article probably ...
Nosrac's user avatar
  • 6,839
5 votes

Determining current value for real estate for inheritance purposes

There are multiple ways of determining the value of an inherited property. If you aren't planning on selling it, then the best way would be to have a real estate agent do a comp on the property (or ...
Michael's user avatar
  • 10.2k
5 votes
Accepted

Is there something equivalent of a 1031 Exchange for the UK

Assuming that what you want is a way to roll forward a capital gain on an investment property you’re selling, to the purchase of another investment property, then the answer is no. The capital gains ...
Mike Scott's user avatar
  • 23.5k
5 votes

Including all the ultra-wealthy, what's the average income in the US?

The IRS publishes statistics on the actual numbers claimed on tax returns. The most recent summary report on individual tax returns is from 2015. In that report, it is shown that there were 149,938,...
Ben Miller's user avatar
  • 116k
5 votes

Capital Gains Tax when withdrawing from a stocks & shares ISA in the UK

TL;DR: If the gain was made within an ISA, no CGT will be due, whatever you do with the money. You can keep it in the ISA (by reinvesting in other stocks) or withdraw it to "a normal bank account"1. ...
TripeHound's user avatar
  • 9,167
5 votes

Can we all be rich together?

If in the US, major discount brokers have eliminated commissions. Pooling money doesn't make you rich. Pooling money doesn't increase gains. Pooling money doesn't reduce risk. Pooling money is a ...
Bob Baerker's user avatar
  • 76.8k
5 votes

One-time estimated tax payment for windfall

Can I just make a one-time, one-off payment Yes. Do I necessarily need to fill out a 1040-ES or can I make an educated guess at the tax That part I don't know. how would I go about reporting this ...
RonJohn's user avatar
  • 50.7k

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