Question

Paying Taxes

Forum|Forum|6 years ago
December 14, 2019
1 reply
0 views

Hi,

if i make a gain from selling stocks the only tax I need to pay is the long and short capital gain bracket? Because my income taxes from my job is federal, state, Medicare, social security, etc. so if I gain from a stock selling all I need to pay is the capital gain? Also if I loose profit how does it work will I get more tax return or ???

N

NCPERSON1

stock sold at a gain is only subject to federal and state taxes; no obligation to pay social security or medicare tax on that gain

if you have a loss, those losses can be offset against any gains. if you have more losses than gains, you can deduct up to $3000 of those losses as ordinary income in a year and then defer any additional losses to the following year where you can again use the remaining losses to offset any gains and then deduct up to $3000 of any further remaining losses against ordinary income. That continues into the future until all the losses are used up.

TT will handle this with no problem