New answers tagged capital-gains-tax
2
The accepted answer is right, in that a cash acquisition is in effect a forced sale for cash, so gains are realized and recognized and hence taxable. But if you really want to defer paying taxes on the gain, there are options. For example qualified opportunity funds, discussed by IRS here and Kiplinger here. Note that you much be a qualified investor. I ...
0
I have RSUs and in-the-money stock options granted by my company, both vested. I've held the RSUs for over a year, so I understand that when selling, I would pay long-term capital gains tax on the increase in price since the date of vesting.
Correct.
The stock options are unexercised, so I understand that if I were to exercise-and-sell, I would pay short-...
33
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.
2
"Long Term Capital Gain (STT not paid and booked profit is less than double of Index Profit)" sounds cryptic but actually it helps you decide between B2 and B3.Let me explain. You can either pay 10% of booked profit (selling proceed - cost of acquisition) or pay 20% of index profit (selling proceed - cost of acquisition with indexation). Let us say ...
6
In the US, there are a large variety of taxes for different contexts. There are property taxes, sales taxes, income taxes, inheritance taxes, cigarette taxes, gasoline taxes, etc.
With stocks and other related financial instruments (ETFs, LPs, derivatives, etc.) the only two taxes that occur in the vast majority of cases are capital gains taxes and dividend ...
3
If you sell shares of stock for the exact same price as what you paid for those shares, then the capital gains is zero; thus the capital gains tax is also zero.
It gets more complex if during the time period that the shares were owned, the company paid dividends. That would mean that that those dividends were probably taxable. If the dividends were ...
2
The fact that the wash-sale tag gets a new question every few weeks (around 30 questions in 2021 with wash-sale and united-states) means that there are answers much more recent than 2019. In the united states the law hasn't changed in decades. I haven't heard any rumblings about changing it.
The wash-sale rules do not cause much of an impact for most ...
4
Yes, interest on a mortgage is deductible from your income, but only if you itemize deductions, which many do not. For many people, it's better to take the standard deduction unless you have a very large mortgage (paying more in interest than the standard deduction) or have other deductible expenses like state and local taxes (which are currently capped at $...
0
This answer assumes you are in the United States.
There are two main tax benefits:
Mortgage loan interest is deductible on your income tax
Capital gains exemption when you sell your house
These two are not unlimited but they are quite generous.
If you buy your home with cash, then you can't take advantage of the first one. Though if you have enough cash ...
1
If I have say a 401k account, and say I sell some of my stocks in
there, but I don't pull the money out of my account, is the only tax
involved the capital gains tax? Or will I pay my income tax on it and
the 10% extra tax for people before 65 (I am younger than 65)?
First of all the key age if it applied it would be 59.5 not 65.
Selling things within the ...
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