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Buying Stocks & Taxes?

I am 19 and live in NY and I have bought a few shares of stock now if I don't sell any stocks before 2011 am I going to be taxed or do you only get taxed when you sell a share or receive $10 or more in dividends? I have no income and I am dependent on my parents so if I did make a little profit off a stock would I have to pay any taxes?

2 Answers

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  • 1 decade ago
    Favorite Answer

    A. Right now there will be no tax on your dividends (2010)

    B. Increase in value (growth) of your shares is not taxable until you sell the shares.

    If you do sell the shares & your parents don't claim you as a deduction, based on what you've said, there would be no tax due.

  • ?
    Lv 6
    1 decade ago

    I agree with common sense but Im not a tax person, let your parents help you.

    Stocks do not create a tax unless dividend or sold .

    Exceptions: A foreign stock may have a tax to that country. And a' trust' may have multiple state taxes.

    * Mutual funds trade within the fund and there's always something to report.

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