91
votes
Accepted
selling appreciated stock vs gifting it to charity
This might be a strange notion but people donate to charity because they... want to donate to charity.
That's it.
Now, if you are going to donate to charity, donating an appreciated stock may be ...
- 1,590
62
votes
Accepted
What are the differences between capital gains and other forms of income?
I think this question is very nearly off-topic for this site, but I also believe that a basic understanding of the why the tax structure is what it is can help someone new to investing to understand ...
- 41.4k
54
votes
Accepted
If my account only sells crypto, will I get taxed?
Yes, you'll be taxed.
If no exchange can calculate your basis, they'll simply report to the IRS that you sold crypto and received $2000. The IRS will assume that your basis was $0 and that the whole $...
- 24k
51
votes
If my account only sells crypto, will I get taxed?
The first important principle to remember when it comes to taxes is this: Taxable events are taxable whether or not anything is reported to the IRS by someone else. You are legally required to report ...
47
votes
Accepted
What is it called when you sell and reinvest to pay lower taxes?
It sounds like you're describing tax gain harvesting, where you intentionally realize capital gains in a low-tax-rate period in order to increase your cost basis and reduce future capital gains at ...
- 123k
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 ...
- 52.1k
46
votes
Accepted
How do I avoid paying tax on a cryptocurrency gain that I have already lost?
In the U.S., gains from cryptocurrency trading are taxed just like trading stocks: as capital gains.
Capital gains are only taxed when they are realized. At this time, you have realized a $40,000 gain,...
42
votes
Accepted
Capital gains on stocks sold to take initial investment off the table
No, it is not correct.
You bought those 909 shares for $90,900. You sold them for $99,990. Your capital gain is $9,090
Or you could calculate the cap gain by multiplying the share price increase by ...
- 75.5k
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 ...
- 75.5k
42
votes
Accepted
How do I realize tax losses on a cryptocurrency I can't sell?
I would preface by saying it's probably best to contact a tax professional.
Beyond that this thread is semi relevant, albeit about illiquid penny stocks as opposed to crypto: How do I get rid of ...
- 521
38
votes
Accepted
What do I need to do, tax-wise, for a sudden windfall?
In this case you should consult an actual tax professional since that can be rather complicated.
In general
Tax treatment depends on whether (and how long) you did own actual stock at any point or ...
- 7,535
34
votes
Accepted
How to avoid taxes when a stock you own is taken over in a cash deal?
US centric answer:
An all-cash deal is a sale so there is no way to avoid taxes when there's a cash buy out of a position in a non-sheltered account.
- 75.5k
32
votes
Accepted
If I sold some stock by mistake and immediately bought it back, is that sale still subject to capital gain tax in USA?
The only way this could work is if you convince your broker that there was a malfunction in their site/app and they agree to adjust their records as if you had not sold the stock. If you have a good ...
- 29.3k
31
votes
Accepted
Can you gift someone money for purpose of investing to avoid capital gains upon inheritance?
There are some issues with this plan:
you have to trust they will do what you want with the money.
you have to hope that they won't need it.
you hope that the presence of this investment fund doesn'...
- 125k
31
votes
Accepted
What is the likelihood I get in trouble for forgetting to file cryptocurrency taxes? What should I do?
The IRS has a site about virtual currency, including Frequently Asked Questions.
In general, a gain that you make buying and then selling cryptocurrency is subject to capital gains tax. There is no ...
30
votes
Is there any reason to invest in stocks, ETFs, etc. outside of a tax-advantaged account?
Some thoughts:
There's a limit to how much you can put in a tax-advantaged account. Even with mega back-door and other ways to move money around, there's still limits into how much you can contribute
...
- 123k
29
votes
Accepted
How can you minimize taxes on cryptocurrency trading?
(Assuming US based on profile)
Welcome to the world of income taxation. Your $1,000 in short-term gains will be treated as "normal income" and subject to your marginal tax rate. So there is ...
- 123k
29
votes
Accepted
How many years do I need to own a house until I don't have to pay capital gains taxes?
The property must be your primary residence and you must have occupied it for 2 of the last 5 years and make no more than $250,000 in gains if you're single or $500,000 if file joint tax returns with ...
- 13.8k
28
votes
Accepted
The Government might have seized my investment assets, how do I treat them on my tax return?
Can I declare them as stolen?
Of course not, it wasn't stolen.
Just 100% capital loss?
No, you haven't yet incurred the loss.
According to the guidance from the Fund manager (Franklin Templenton), ...
- 148k
27
votes
Is there any way to reduce the taxes on my capital gains?
You need to meet a woman (or man if you are in a state that allows same sex marriage) who has a carried forward loss or other loss that exceeds the $3K/yr they can take against their own income. If ...
26
votes
Accepted
Is it better to realize a loss and buy back into a stock at the lower price or just hold it?
Is it better to realize the loss and buy back in at the lower price or just hold it?
I'm not a big fan of hypothetical questions. It depends on what you're trying to optimize for, i.e. taxes or total ...
- 7,383
25
votes
Accepted
$0 in taxes if stock losses from previous year exceeds stock profits from this year?
Assuming that you had no gains in year ONE when you realized $50k in losses, you would deduct $3k on your taxes and have a carry forward loss of $47k.
In year TWO you realized $50k in capital gains. ...
- 75.5k
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 ...
23
votes
Accepted
Can I avoid capital gains tax if I sell only the amount I put in and leave the rest?
No - stocks are bought and sold in shares, not dollar amounts, so the 5 shares you sold would have a cost basis of $50 and a sold value of $100 for a capital gain of $50.
- 123k
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 ...
- 75.5k
21
votes
If a mutual fund sell shares for a gain, do investors need to pay capital gains tax twice?
Yes, you pay capital gains tax on ETF holdings just like mutual find holdings, but you are not "double taxed".
Say you buy a fund at the beginning of the year and sell it at the end of the ...
- 123k
19
votes
What is the tax liability on the sale of a classic car?
If the numbers are somewhat near correct, I think this would justify spending some money on good accounting advice.
In the general sense you will have to claim any profit as income from the sale of ...
- 75.2k
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 ...
- 23.9k
17
votes
Accepted
Do capital gains taxes need to be paid throughout the year to avoid underpayment of estimated tax penalty?
It doesn't matter what kind of income you owe taxes for (capital gains, wages, or whatever), the rules for the underpayment penalty are the same. There are two safe harbor levels: 90% of this year's ...
- 16.4k
16
votes
Accepted
Do you pay taxes on stock gains that are just returning to their original purchase price?
You don't generally pay capital gains taxes until you sell the stock.
If you bought it in 2013 and the price goes up in 2014 but you just hold on to the stock, you won't have to pay any taxes on it. ...
- 14.1k
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