Tax question
i know we are not tax experts but thought i would ask and get some opinions (me being a new trader and all)
- How much is capital gain tax? Is it different per state? I've been hearing long is 15-25% and short is 25-50%
- If I transfer stock to someone else (yes it's possible), how is this taxed for me the sender and how is it taxed for the receiver?
long term capital gains is 15%, short term is taxed at the same rate as ordinary income tax so whatever your tax bracket is.
What he said^, which is the Federal rate. Plus, whatever your state income tax rate is. It is only your net gains that are taxed. Holding period is 1 year to get long-term status for a long position.
Disclaimer: ****i am not a tax advisor****
The answer to your second question is a bit complex, but it depends on several factors. If you give irrevocably to another individual, then you can give up to $13k ($26k if married and you split gifts) in stock. If you exceed this amount, it is a taxable gift and a gift tax return must be filed by you. No tax is due until you exceed your lifetime gift exclusion, now at $5.12 million. No taxes on the receiver of the gift, unless they sell the stock or if dividends are paid. Good luck!
Agreed, tax is on net gains. Unknown, yes, under 13k there are no issues. It's called an annual exclusion gift.
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