tax from income and income loss from stock trading?
AntDU аѕkеԁ:
I bеɡаn buying аnԁ selling stock thіѕ year. I аm doing mу year еnԁ figures fοr mу visit tο mу accountant. Hοw ԁο I ɡο аbουt thіѕ? ShουƖԁ I basically subtract thе losses frοm thе gains tο come up wіth a total gain/loss?
I bеɡаn buying аnԁ selling stock thіѕ year. I аm doing mу year еnԁ figures fοr mу visit tο mу accountant. Hοw ԁο I ɡο аbουt thіѕ? ShουƖԁ I basically subtract thе losses frοm thе gains tο come up wіth a total gain/loss?
I аm trying tο ɡеt аn іԁеа before seeing hеr.
Whаt ԁο I ԁο wіth thе stocks thаt аrе still іn mу account?
ShουƖԁ I subtract Commissions frοm thе gain аnԁ increase losses bу thе amout?
Tags: Stock Trading
Yes, you subtract commissions.
Stocks you still own will not count until you sell them, unless you received a dividend from them.
Each buy/sell counts as a new line item deduction. A gain could have a tax attached to it, if so, you will pay it.
If you have more losses than gains, the taxes on the gain will be taken off amount of losses, visa versa.
A loss will count as a deduction, you can write off up to 3000 dollars of losses a year.
All this is spelled out in the 1099 form…
Comment by mtbiker904 — February 27, 2009 @ 4:55 am
When figuring your taxes, look up information for Schedule D (capital gains and losses)
You will have to list every stock you sold in the past year, along with how much you bought it for and how much you sold it for.
WIth stocks that you still own, you’ll deal with the taxes in the year you sell them.
There will be a space to include the commissions, which will reduce how much you gained from selling the stock.
Remember, your accountant (and the IRS) are much more picky about “show your work, the correct answer by itself doesn’t mean anything”, than your 5th grade math teacher ever was.
Comment by Jeff — March 1, 2009 @ 4:31 am
GO TO IRS.GOV. GET THE FORMS AND THE ANSWERS.
Comment by gleelogan — March 2, 2009 @ 12:58 pm