Hey Burnon,

Here is the link for my blog.  Like I said, it is just plain and will have some good common sense tax tips.  Try it out and it could save you a buck or two.

www.expresstaxvaldosta.com/blog

Thanks,

Terry conley

Hi Burnon,

Sorry it took a couple of days to get back with you on your question.  Unfortunately, you will have to pay capital gains tax on the profits you made. 

You will get a statement from your broker listing the stocks you sold, the total amount of the sale, and the sale date.  That amount is reported to the IRS.

Then, when you file your tax return, you will have to attach a Schedule D, which lists the date you bought the stock, the price paid, the date of sale, and the sale amount.  You have two categories, long term and short term.  If you owned the stock for 1 year and 1 day, it is considered long term.  Anything less is short term.  Long term is always better, because you pay less tax on it.

If you have any sales that resulted in a loss, they offset the gains.  If you had one sale that resulted in a profit of $1000 and another sale that resulted in a loss of $500, then you only owe tax on $500.

You can't re-invest and postpone the tax.  Sorry!

Of course, the tax on capital gains is only a max of 15%, depending on your gross income for long term gains.  If your income is low, it could be even less. If the gain is short term, it is calculated at your marginal tax rate, ie; 15% 25% etc. whatever bracket you are in.  Hope this helps out some.

I have started a blog which is going to cover lots of situations like this.  Not really high tech, just some simple helpful tips and personal ramblings about Income Tax.  I'll send you another post with the link if you are interested.  Be sure to get back with me if you have any additional questions.  Thanks for being my Buddy and keep up the good work on your portfolio.  You are doing great.

Terry Conley

Hey Guy,

Thanks for your comments.  I have been too busy for the last few weeks to attend to my portfolio and it really went down the drain.  I'm atempting to salvage it without doing a reset.  Real life has no resets and I'm going to do it the hard way.

Thanks,

Terry Conley

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