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How much will I be taxed on a $300 stock gain.

post #1 of 14
Thread Starter 
If I sell my stocks now I will net about $350 (I am a student and am only playing around with penny stocks). I am in the lowest tax bracket for income purposes. How much will I be taxed upon? Also I am only taxed based on what I make, not what I put in plus my gain.

ex. I put $150 into a .06 penny stock. It is now at .21 so I've made 250% or $350. Therefore I'm only taxed on that $350?

If someone could explain I would be much appreciated. I have also lost $80 on a different stock, can I offset my taxes with losses?
post #2 of 14
.06 to .21 should be a $375 gain. Subtract commissions from that then offset the $80 loss which should leave you with roughly $275. Lowest tax bracket is 10% so you would owe about $27.50 in taxes.
post #3 of 14
Thread Starter 
Great. And the offsetting loss is dollar for dollar against gains? Although, I may just hold off and not sell the stock that is doing poorly until its back on its feet again, so I would not have any losses to report.
post #4 of 14
Quote:
Originally Posted by Bob_Bobber0 View Post
Great. And the offsetting loss is dollar for dollar against gains? Although, I may just hold off and not sell the stock that is doing poorly until its back on its feet again, so I would not have any losses to report.
Yep dollar for dollar.
post #5 of 14
don't forget that you're subject to state capital gains taxes too.
post #6 of 14
Quote:
Originally Posted by Bob_Bobber0 View Post
Great. And the offsetting loss is dollar for dollar against gains? Although, I may just hold off and not sell the stock that is doing poorly until its back on its feet again, so I would not have any losses to report.
A good choice!

Reinvest your gain means your cost has been adjusted.
post #7 of 14

Uh, you dont pay capital gains taxes on 350$. You will pay your normal rate bracket if you are dumb enough to claim it on your taxes. Its an inconsequential amount. take your earnings are reinvest them. Get some "meaningful" (I say this lightly) gains before you worry about your taxes lol.

 

post #8 of 14
Quote:
Originally Posted by linuxpenguin View Post

Uh, you dont pay capital gains taxes on 350$. You will pay your normal rate bracket if you are dumb enough to claim it on your taxes. Its an inconsequential amount. take your earnings are reinvest them. Get some "meaningful" (I say this lightly) gains before you worry about your taxes lol.

 


WHAT IF HE GETS AUDITED BRO

post #9 of 14
Quote:
Originally Posted by woswill View Post



Quote:
Originally Posted by linuxpenguin View Post

Uh, you dont pay capital gains taxes on 350$. You will pay your normal rate bracket if you are dumb enough to claim it on your taxes. Its an inconsequential amount. take your earnings are reinvest them. Get some "meaningful" (I say this lightly) gains before you worry about your taxes lol.

 


WHAT IF HE GETS AUDITED BRO



 LOLOL

 

Id suggest he use his gains to hire a big shot IRS attorney to fight the case.

post #10 of 14
Quote:
Originally Posted by Crazed98 View Post

.06 to .21 should be a $375 gain. Subtract commissions from that then offset the $80 loss which should leave you with roughly $275. Lowest tax bracket is 10% so you would owe about $27.50 in taxes.


Holly cow huge edit, everyones math is off, even mine. I deleted it though. $150 was originally his, so the profit is really $125...... 12.50 tax.

 

Though the real  math is $150 times 350% equals $525, with $80 loss being 445 minus the original $150 becomes $295 at 10% is $29.50...

 

Though I want to know what the original posters actual account stands at?

post #11 of 14
Quote:
Originally Posted by S.C.G. View Post



Quote:
Originally Posted by Crazed98 View Post

.06 to .21 should be a $375 gain. Subtract commissions from that then offset the $80 loss which should leave you with roughly $275. Lowest tax bracket is 10% so you would owe about $27.50 in taxes.


Holly cow huge edit, everyones math is off, even mine. I deleted it though. $150 was originally his, so the profit is really $125...... 12.50 tax.

 

Though the real  math is $150 times 350% equals $525, with $80 loss being 445 minus the original $150 becomes $295 at 10% is $29.50...

 

Though I want to know what the original posters actual account stands at?


 

It is the same math I just subtracted an extra $20 for estimated commissions 295-20= 275

post #12 of 14
Quote:
Originally Posted by Crazed98 View Post



Quote:
Originally Posted by S.C.G. View Post



Quote:
Originally Posted by Crazed98 View Post

.06 to .21 should be a $375 gain. Subtract commissions from that then offset the $80 loss which should leave you with roughly $275. Lowest tax bracket is 10% so you would owe about $27.50 in taxes.


Holly cow huge edit, everyones math is off, even mine. I deleted it though. $150 was originally his, so the profit is really $125...... 12.50 tax.

 

Though the real  math is $150 times 350% equals $525, with $80 loss being 445 minus the original $150 becomes $295 at 10% is $29.50...

 

Though I want to know what the original posters actual account stands at?


 

It is the same math I just subtracted an extra $20 for estimated commissions 295-20= 275


Just the same, I still want to know what the OP balance was at the beginning of the year, verses the end of the year. Like my $100+ profit in SLV doesn't count becuase of a few hundred down in TZA. You know what mean.

post #13 of 14

you guys seem to forget you need to make a certain amount before capital gains tax goes into affect. He legally doesnt need to claim 225$ on his tax returns.

 

isnt it like 3000? 

post #14 of 14
Quote:
Originally Posted by linuxpenguin View Post

you guys seem to forget you need to make a certain amount before capital gains tax goes into affect. He legally doesnt need to claim 225$ on his tax returns.

 

isnt it like 3000? 



 

10 Facts About Capital Gains and Losses

 

IRS Tax Tip 2010-35


Have you heard of capital gains and losses? If not, you may want to read up on them because they might have an impact on your tax return. The IRS wants you to know these ten facts about gains and losses and how they could affect your tax situation.

  1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.
     
  2. When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.
     
  3. You must report all capital gains.
     
  4. You may deduct capital losses only on investment property, not on property held for personal use.
     
  5. Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.
     
  6. If you have long-term gains in excess of your long-term losses, you have a net capital gain to the extent your net long-term capital gain is more than your net short-term capital loss, if any.
     
  7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2009, the maximum capital gains rate for most people is15%. For lower-income individuals, the rate may be 0% on some or all of the net capital gain. Special types of net capital gain can be taxed at 25% or 28%.
     
  8. If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
     
  9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.
     
  10. Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13of Form 1040.
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