Stock capital gain this yr capital loss last year… Tax question.?
Hello!
I have had a terrible year in 2009, lost close to 50% of my portfolio, yet this year I have gained most of them back, and I am not planning to have long term hold on these gain, and are in short term capital gain. So will I get taxed hard on these basically earned back of my original principal portfolio? Note: I am still at a loss compare to my original portfolio size. I lost last year, and this year I merely earn some not all back and will I get whacked by the 25% tax on that? I am at a very disadvantage to that how can I prove that overall I am still at a loss…
| Print article | This entry was posted by admin on November 8, 2010 at 4:50 am, and is filed under Uncategorized. Follow any responses to this post through RSS 2.0. You can leave a response or trackback from your own site. |
about 1 year ago
Gain or loss is determined on a stock by stock basis, not on your entire portfolio. For each stock you sell you will subtract the amount you got on the sale from the amount you paid for it when you bought it. So if you bought XYZ company for $50/share, last year it went down to $10/share, and this year you sold it when it was at $30/share, you would have a $20/share loss on XYZ company stock. You would determine gain or loss on each sale in this way. So if you sell all the stocks that have gains on them right now you will be taxed on those gains. If you sell all stocks that are at a loss right now, at least some of that loss is probably deductible. If you sell some for a gain and some for a loss, gains and losses are netted (assuming they’re all short term).
But to reiterate the answer I think you’re looking for, gain is determined by what you bought and sold the stock for, not how much value it might have gained over the past 12 months.
about 1 year ago
the loss or gain on your stocks is a simple calculation based on the cost ( basis ) when you bought the stock and the sale price when you sell them so dont get worried about how much the stock rebounded because that is irrelevant. what is important is how much you gain or lose after you sell the stock and how long long you held it. less than a year is short term gain/loss and more is long term. if you are trading constantly as in a day trader it can get costly for someone to prepare this for you because we need to report all the sales and it is time consuming. but i think from what you have asked you just need to report the price of the stock when you bought it and the price of the stock when you sold it. you should get forms from your broker to do this.
about 1 year ago
If you SOLD last year at a net loss over $3000, you would have carried the loss amount over $3000 to this year and could use it to wipe out some of your gain this year.
For stocks you didn’t SELL when they were down so far, you won’t show a huge gain since your basis is still what it was before they went down so much.
about 1 year ago
Gain.
Long or short term.
Is the amount that you gained on the item over and above your original purchase price(cost basis).
Example:
If you bought a stock at $10.00 a share, then later sold it for $12.00 a share, then your capital gain would be $2.00 a share.
Furthermore, if you bought it at $10.00 a share and sold it at $8.00 a share, then you would have a capital loss of $2.00 a share.
Capital gain (or loss) is dependent upon the original purchase price(cost basis). So, if you lost 50% on the stock last year, and have not gained back that 50% yet, then if you sold now you may have a capital loss.
Short term capital gains are gains made from assets that have been held less than a year. You will pay tax on short term capital gains at your normal tax rate.
Long term capital gains are gains made from assets that have been held for more than a year. You will pay a lower rate of tax on these gains. I am unsure of the rate at the moment.