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I have a Tax question:
I have 16,187 shares of SIRI that was purchased at an average of $.1382 a share. I’ve got some plans and want to hold out until SIRI hits $1.00 then sell it all.
With a net profit of about $13,942-what kind of taxes would I have to pay?
Depends on how long you hold them, how the cap gains tax structure changes and what your tax bracket is.
Talk to a good CPA, audits are not fun.:(Quote:
Originally Posted by Gallep
I'm not worried about an audit. I've been Turbo Tax'in for 6 years now and have been through this process before, just on a much smaller level. I claimed a measly $88 from the stock market and I barely noticed it on my return. I was just wondering if there was a formula or something to determine an estimated % of taxes that I should set aside from the sale.
take 30 percent off and thats a good ball park figure.
Sweet, works for me. Thanks!Quote:
Originally Posted by trippingthespeculatingpos
I am not an accountant, but I believe if you hold for less than a year (short term gain), you will be taxed as income (both federally and for state) some qualify earned vs unearned income with different rates. As income on a good year, ouch..
If you hold it for longer than a year, (long term gain), you will be taxed as a capital gain, and depending on rates at the time, your tax will then be determined on the gain... If you have different lots (purchases / cost basis) with the total shares purchased, each lot needs to be assessed separately. If you bought and sold the same equity within a 30 day period, research "Wash Sale" rules to compute your total tax due, and for establishment of a proper cost basis.... These are but a few considerations.... and why most say consult if not use a CPA at least once before going it alone.....