Im pretty noob to stocks tbh


So is this how capital gains works on a stock just sold


The moment the person sells a stock, if they made money on the sell...capital gains tax is instantly applied to the earnings of the stock

then when tax season comes around is when the person pays the capital gains on that stocks earnings


correct?


Capitol gains tax isn't applied after I take however much money I have in my robinhood account and move it to my bank account right? <--- this isnt correct right?




just tryn to make sure i self cucked myself rn and the only way to get back in would be to get back in at the same price but having to pay capital gains cuz i just sold lel

As soon as you sell or trade its taxable.
At that point the gain is realized, even if you haven’t cashed it out yet.
You pay the tax at the of the year so save that portion

This post was edited by KRR on Apr 22 2021 10:44pm

as KRR said the rules are now sell or trade = taxable event.

robinhood fucks you because it’s incredibly difficult to sell tranches of shares. so you have to sell first in first out which is horrid for taxes. which is why i only buy in huge blocks once there unless its smalltime meme shit.

big brokerages like td, fidelity, charles schwab or whatever let you pick which tranche of shaes to sell. like literally each stock has a listing code or whatever that i can say sell share 19361881727177189191848 of whatever company.

Say i have shares of abc company ive been buying over time, with td or those other ones i can go determine what I bought it at 50 and say im selling it for 55 (hypothetical) rather than being forced into selling what I bought at 30

ok thanks for clarifying

i suck

I al



Hey guys i invested into doge.
Doge is dropping and i kind of want my $ back.
I could cash out and be up 115 bucks right now.
Is it worth it with taxes to cash out?



When you sell a stock at a profit, you probably do owe capital gains tax, but not on the full amount of the sale. You're only required to pay taxes on your profit, so that means you can subtract the amount you paid for the stock when you originally bought it

Seems like taxing my 115 in profit would be a 20 $ tax roughly. Doesnt seem terrible still up.


This post was edited by Megatroniks on Apr 23 2021 08:17am

sounds like you got in recently (less than one year). you would pay short term capital gains which is based your income tax rate. these taxes are not due until next year, as we are still in the 2021 tax year (of which taxes are due, barring any govt delay or extension(s) you file, around April 15 2022)

https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-gains-taxes-brokerage-accounts-etc/L7KCu9etn

Okay and yes thank you

some1 told me that if i sell a stock and within a certain time period put that money into another stock, i can avoid capitol gains tax?

is that true or did i misunderstand what they said lul

the only way you avoid capital gains is by having losses before that you apply to offset your gains. or by just not paying them which is ia horrible idea.

you were probably looking at wash sales, which is when people sell at a loss and immediately rebuy to try and have a capital gains loss. this doesnt work if you rebuy within 30 days

Why horrible idea? I have never paid any taxes