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Hoofhearted
Registered: Aug 2012
Posts: 447 |
10-01-12 11:48 PM
Let's say hypothetically that I have turned $50,ooo profit during the first 11.5 months of 2012. Then during the last week or two of DEC, I invest all of it back into the market where it will remain until sometime in 2013.
What percentage would I be income taxed if my re-ienvestment was put into actual shares?
How about if my entire re-investment was put into options contracts, is there a difference?
I am currently studying tax law, but was interested in what ever it is others here would like to share about the topic.
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Free Thinker
Registered: Nov 1999
Posts: 14316 |
10-02-12 12:46 AM
Quote from Hoofhearted:
Let's say hypothetically that I have turned $50,ooo profit during the first 11.5 months of 2012. Then during the last week or two of DEC, I invest all of it back into the market where it will remain until sometime in 2013.
What percentage would I be income taxed if my re-ienvestment was put into actual shares?
How about if my entire re-investment was put into options contracts, is there a difference?
I am currently studying tax law, but was interested in what ever it is others here would like to share about the topic.
your taxes would be on the 50k profit. once you have booked a profit there is no way to unbook it unless you take a realized loss that could be used to offset the profit.
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Free Thinker
Registered: Nov 1999
Posts: 14316 |
10-02-12 01:56 AM
Quote from nutmeg:
you could put some amount into an IRA and invest that, this woud insulate a small portion from taxes.
not unless he has some earned income.
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brokerboy
Registered: Oct 2003
Posts: 1856 |
10-02-12 02:16 AM
study harder i am still laughing do you know how many people would never pay tax if you could do that haha
Quote from Hoofhearted:
Let's say hypothetically that I have turned $50,ooo profit during the first 11.5 months of 2012. Then during the last week or two of DEC, I invest all of it back into the market where it will remain until sometime in 2013.
What percentage would I be income taxed if my re-ienvestment was put into actual shares?
How about if my entire re-investment was put into options contracts, is there a difference?
I am currently studying tax law, but was interested in what ever it is others here would like to share about the topic.
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Edit/Delete • Quote • Complain |
Hoofhearted
Registered: Aug 2012
Posts: 447 |
10-02-12 02:37 AM
Quote from Free Thinker:
your taxes would be on the 50k profit. once you have booked a profit there is no way to unbook it unless you take a realized loss that could be used to offset the profit.
That makes sense. But what if I never sold any stock for a profit. And instead my holdings had gained 50k in value?
In other words, I buy 50k in XYZ at the beginning of 2012, and at the end of the year my stock is valued at 100k. Am I to pay an income tax in this situation?
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