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kapilricha1
kapilricha1
P&P Score: 98.35   Points: 29.18   Accuracy: 53.85%   Average Pick Score: 1.13   Annual Return: 26.49% (71.77% since 9/10/09)  

kapilricha1's Blog : Tax rules

Date December 29, 2009    Comments Comments (5)    Recommended (103)   
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Does anyone have any good pointers for the tax rules on the profit/loss on the stocks traded during the year. I am specially looking for information on holding of stocks less then 6 months.

Happy Holidays


5 Comment(s):

Author MackTheKnife     Date December 29, 2009 14:24 Abuse this post Report Abuse
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Howdy, kapilricha1!

Does anyone have any good pointers for the tax rules on the profit/loss on the stocks traded during the year. I am specially looking for information on holding of stocks less then 6 months.

Most years, I employ IRS.gov as my primary source of information about capital gains and losses (http://tinyurl.com/yg96aq) and a tax-preparation software package as my secondary source of information about them (e.g., TurboTax).

Good luck!

MackTheKnife
Author kapilricha1     Date December 29, 2009 20:09 Abuse this post Report Abuse
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What if I am currently at loss in some stocks. Would it be advisable from tax purposes if I sell them and reduce my net taxable income from the stocks?

Author MackTheKnife     Date December 30, 2009 03:08 Abuse this post Report Abuse
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Howdy, kapilricha1!

What if I am currently at loss in some stocks. Would it be advisable from tax purposes if I sell them and reduce my net taxable income from the stocks?

Certainly, December and tax-loss selling have been linked in the minds of many equity-market operators for a long time. However, all of them have to be aware of the Infernal Revenue Service's rules on wash sales (http://tinyurl.com/yd38y5b). In any event, I believe tax-loss sales for this year should be carried out by the close of business tomorrow.

Good luck!

MackTheKnife
Author sashelly     Date December 30, 2009 13:54 Abuse this post Report Abuse
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Hi
Any stock that you sell at a profit in less then a year and a day is taxed as a capital gain. You are allowed to deduct $3000 in losses against any gains. After the past year most of us have losses that you can write off
Author kapilricha1     Date December 30, 2009 21:40 Abuse this post Report Abuse
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Thanks Sashelly,

Does it mean that I can claim max of $3000 loss in one financial year? What if I make a gain of 5000 and loss 4000, in this case will I be taxed for 1000 or 2000?

Wish you a happy trading decade!!!
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