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Buying/selling stock, how does this affect taxes?
Ok, my hubby and I put 100 bucks into an etrade account. We aren't looking to get rich anytime soon, but thought we could take advantage of some good deals should they arise. I've been playing with a stock simulator and have learned alot. But my question is this, how does buying and selling stocks affect a person's taxes? Do I incur taxes simply by owning the stock or when I sell it? If I don't make a profit off the sale, do I still pay taxes? Will etrade send me a tax document at the beginning of the year like a w-2 comes from my employer? Any help would be great!! Thanks guys!
4 Answers
- Anonymous1 decade agoFavorite Answer
No tax on buys
Tax on profit when you sell
Tax deduction on loss when you sell
Broker will provide tax docs
- Steve DLv 71 decade ago
Your taxes are only affected when you actually sell your stock. If you sell at a loss, you may be able to claim a tax loss depending on your circumstances (talk to a tax accountant). If you sell at a gain(a capital gain), you will pay either at your income tax rate (if you held shorter than a year) or at the capital gains tax rate (for stocks held longer than a year) which should be a lower rate.
Not sure exactly what eTrade will send you.
- Anonymous5 years ago
Not really sure if that's right
