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Sun 29 Nov, 2015 03:58 am
Lets say you have 10,000 dollars invested into stock one. Now let's say that stock one double in price and you now have 20,000 dollars worth of stock. So then you decide to sell all of your shares and are wanting to buy another stock. So you buy 20,000 dollars worth of stock two, but you lose 15,000 dollars. Now all the money you have left is 5,000 dollars. When you pay taxes at the end of the year, do you report a loss or profit on your stock investments?
@Stocks4you,
Stocks4you wrote:
Lets say you have 10,000 dollars invested into stock one. Now let's say that stock one double in price and you now have 20,000 dollars worth of stock. So then you decide to sell all of your shares and are wanting to buy another stock. So you buy 20,000 dollars worth of stock two, but you lose 15,000 dollars. Now all the money you have left is 5,000 dollars. When you pay taxes at the end of the year, do you report a loss or profit on your stock investments?
Assuming all this happens in one calendar year and you sold the losing stock, you report a loss. There are some other rules around how long you held the stocks that you need to think about, but if you are using tax software, they will compute them for you. If you are still holding the losing stock, you have not yet incurred the loss and you pay taxes on the gain.
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