Im new to stocks i have questions about taxes. First off i opened an account at ameritrade last february it wasnt a ira accoutn just a regular account and i bought some google and apple and have made quite a bit off them. I have not sold any google so i still have not made any profit as of yet. I have sold some apple and made profit but i rebought ebay with that stock. So my question is do i have to pay taxes on my google even though i have not sold any actually made my profit yet. Also on my apple stock since i sold and made a little profit im assuming i have to pay taxes on that even though i bought other stocks with that money. IF i do owe taxex on the apple how and what form do i need to get from ameritrade to show my profits on that sale
First, you only pay capital gains tax on realized gains, so with GOOG, you havent realized any gain yet and therefore pay nothing in taxes...(unless they paid a dividend?)
As for Apple, you have to pay tax on the Realized gain only, not your original investment amount. I do not think they will send you a form for that (TD Waterhouse doesnt). You will need to fill a Schedule D for your gain on Apple with your tax return. All you need is the purchase date, price and # of shares.
Example:
Bought 100 shares of Apple on 2/2/05 for 10$/share
Sold 100 shares of Apple on 12/20/05 for 15$/share.
You would pay tax on the $5/per share gain. (100 shares x $5 = $500)
The capital gains rate for 2005 is 15% so .15*500=$75 in taxes.
As for Apple, you have to pay tax on the Realized gain only, not your original investment amount. I do not think they will send you a form for that (TD Waterhouse doesnt). You will need to fill a Schedule D for your gain on Apple with your tax return. All you need is the purchase date, price and # of shares.
Example:
Bought 100 shares of Apple on 2/2/05 for 10$/share
Sold 100 shares of Apple on 12/20/05 for 15$/share.
You would pay tax on the $5/per share gain. (100 shares x $5 = $500)
The capital gains rate for 2005 is 15% so .15*500=$75 in taxes.
you only pay the capital gain on what you sold prior to Jan 1st. Any capital gains accrued and realized in '05 must be paid taxes on. If you have a capital loss on any investments for '05 you can use that against the capital gain. Also if you have a capital loss for a year, such as in '03 if you lost 10k you can write off up to 3k a yr and keep rolling it over...i.e 3k in '03, 3k in '04, 3k in '05 and 1k in '06. As in the '00 and '01 many people lost a good bit of money in taxable accounts and are rolling over the loss each year to offset the gains
Goog did not pay a capital gain or a dividend in '05 so don't worry about that. Hold on to it atleast till 500.
Also be careful if you own a mutual fund as most paid out cap gains/dividends the first couple of weeks in Dec. It's best to just reinvest the dividends and cap gains anyway unless you need the interest to live off of..i.e retirement
Goog did not pay a capital gain or a dividend in '05 so don't worry about that. Hold on to it atleast till 500.
Also be careful if you own a mutual fund as most paid out cap gains/dividends the first couple of weeks in Dec. It's best to just reinvest the dividends and cap gains anyway unless you need the interest to live off of..i.e retirement
