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2 years ago ::
Apr 19, 2011 - 12:11PM
#1
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Tanya I know the last thing you want to do is answer this lol. I was wondering how profits made in the stock market are taxed. Am I to understand that money left in is not taxed, but if I pull out money that is taxed? Is it taxed at my regular tax rate for my income bracket and how do I find out what that is, Would my tax bracket include money pulled from my stock account or just dh's income? lol. I have no clue about any of this. Any info would be great :) THANKS!
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2 years ago ::
Apr 20, 2011 - 1:37PM
#2
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Okay, quick & dirty answer...you are not taxed at unrealized gains (increases in market value but the stocks, etc., have not actually been sold). You are only taxed when you realize the gain (or get to take the loss when you actually realize the loss, i.e. sell the stock). You are taxed at the capital gains rate, not your ordinary income tax rate. I need to look up what the ranges are for the different capital gains rates...
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2 years ago ::
Apr 20, 2011 - 5:20PM
#3
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Thanks Tanya! I am actually day trading (The bastard child of the stock world) which usually involves buying and selling at least once a day. So I assume I will be paying taxes on the majority of it. I am going to try to look up a capitol gains table :)
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2 years ago ::
Apr 20, 2011 - 7:04PM
#4
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janette--see if this article helps you out any...it is kind of hard to find much on the capital gains tax rates for 2011 b/c 2010 was the end of a tax break for capital gains and it seems like no one wants to go on the record stating the "new" higher rates (maybe they are hoping Obama will make the lower rates permanent, which i think is part of the budget rumors going around...) www.irs.gov/newsroom/article/0,,id=10679...
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