Capital Gains Tax on Stock proceeds?
What is the percentage of taxes when you make a profit from selling stocks ? Is it a different rate than what your tax bracket is ? My wife and I are in the 33% tax bracket ? How do I avoid capital gains on a stock sale?
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about 1 year ago
you can try to off set them with a loss. This year that shouldn’t be too hard. If you held home depot just move into lowes. Also, is this a long term or short term gain?
about 1 year ago
In a 33% bracket, your capital gains rate would be 15%.
You don’t avoid capital gains tax on a stock sale.
about 1 year ago
You can offset gain by taking some losses, which is possible in current situation.
15% capital gain is applicable on long term gains.
about 1 year ago
The tax you pay on capital gains depends on the holding period and the type of property you sold. In the case of stock, if you held the property for more than one year, you will pay long-term capital gains tax of 15%. If you held the stock for one year or less, you will pay short-term capital gains tax of 33% in your case.
Before you sell stock at a gain, if you want to avoid tax on the gain, you could gift the stock to another person if you were going to give them a gift anyway. The recipient would take your basis in the stock, so it would make sense to give stock to a person in a lower tax bracket than you are. The recipient would pay the tax when the stock is sold.
You may avoid capital gains tax entirely if you donate appreciated stock to charity. You may be able to take the market value of the stock as a deduction, and the charity would pay no tax when the stock is sold. Consult with a tax pro before doing this to make sure everything is in order.
about 1 year ago
It will be determined by whether it is short-term (held less than one year) or long-term. If long-term the CG tax is maxed at 15%. Short-term you pay at your regular rate (33%).