How much taxes to pay after selling stocks?
Can anyone tell me how much taxes I will be liable to pay to IRS after selling some US stocks?
I have around K and I need the money, I invested for almost 2 years and it gave me around 400% profit.
I invested ,700 and it says I profited ,306.46, making it close to K. Will I be taxed on K or K, and what percentage ?
Thanks a lot.
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Long-term capital gains (held more than 1 year) are taxed at special rates, while short-term capital gains are taxed at the same rate as your ordinary income.
For 2017:
Tax bracket Long-term capital gains rate
10% 0%
15% 0%
25% 15%
28% 15%
33% 15%
35% 15%
39.6% 20%
Per the name, you're only taxed on the gain, so your proceeds from sale less cost to acquire. Remember that your capital gain is included in figuring out which bracket you're in, but only the capital gain is taxed at the higher rate if it bumps you to a higher bracket, and even then it's marginal, so only the piece above the threshold is taxed at the higher rate.
For example, if you were ,000 from the top end of the 35% tax bracket and realized ,000 in long-term capital gain, you'd pay 15% capital gains tax on ,000, and 20% on the rest.
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