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| *Loan,banking and credit>>>income tax |
If you make a profit on the stock market, how much of a percentage is taken out on ur income taxes? |
I live in Ohio. I'm a newcomer and looking to invest. First of all, you pay no taxes at all until you sell (or receive a dividend). So long as you just hold the stock, there's no taxable event. Second of all, stock earnings are capital gains. Capital gains can be long or short term. Long-term gains, in all cases, are taxed at an entirely different rate as income. When you sell stock, you have the option of having your broker withhold some percentage for taxes or of taking it all. In either event, your broker will send you a 1099 form at the end of the year that lists exactly how much gain you have and how much was withheld. Your tax preparer can then settle everything up (including offsetting gains against losses) on your end of year income tax. So, stocks sold on January 2, 2006 don't have to have the capital gains tax paid until April 15, 2007. When all is said and done, look to lose about 30% of your capital gains to state and federal income tax. It depends on the amount of profit, but you also get to itemize tax deductions and you may be able to come out on top, and if your deductions go over your standard tax deduction which is based on how you file married filing jointly has the highest tax deduction and your worst is married filing seperate single, then head of household is also good because there standard deduction is like $7500.00. I do tax preparation and the websites you can check out is; www.jacksonhewitt.com www.turbotax.com Rather than write it all out "loss leader" is basically correct. If your profits are in a Roth IRA then you'll pay no taxes. If it is in a 401(k) or an IRA taxes will be paid when withdrawn years down the line. But right now dividends and capital gains are taxed at 15%. http://www.heritage.org/research/taxes/w... If you make money from stocks, you would be well advised to pay an accountant to do your taxes....you've been warned. |
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