If I sell shares of stock can I reinvest my profit without having to pay capital gains tax?
If I sell shares of stock in a company can I buy back my shares at a lower price (flip) and not have to pay capital gains? Can I flip my shares and postpone having to pay capital gains tax? I know alot of people who flip their shares, and are able to buy more shares back at lower prices. How are they able to do this when they have to pay a large % of capital gains tax on their profit. Can you flip stock without having to pay tax on the profit?
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about 1 year ago
Nope. When it’s sold, you have a realized gain or loss, and that is a taxable change. Until it’s sold, the gain or loss is unrealized and not a taxable change.
about 1 year ago
You have to pay gains if you sell no matter what. If you don’t wait 30 days to get back in and you have a loss, you won’t be able to write off the loss. At least this is my understanding. You only have to pay on your gains though, so you still come out ahead but if you do it this year for instance, you will have to show the gain on this year’s taxes next year.
about 1 year ago
There are no games you can play. Selling a stock is a taxable event. PERIOD.
If you trade as a business you can use market to market accounting.
Many people trade by selling shares and then buying them back at a lower price. They may hit the wash rule…. but the bottom line is they pay taxes on the profits. At the end of the day…. they are still making good money.
about 1 year ago
The only way to do this is to trade within an IRA.
about 1 year ago
No.
about 1 year ago
No.