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Back in the saddle again
Join Date: Oct 2001
Location: Central TX west of Houston
Posts: 56,234
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Cap Gains tax on investment sales, do I have it right?
OK, lets say you invest $10k in a mutual fund, ETF or stock, and the value of the stock goes up to $11k. Then you sell $1k worth of the stock for some reason. You owned the stock for several years before you sold.
How is that taxed? Since you owned for >1yr, it's long term capital gains at 15%. But the tax is just paid on the increase in value, right? So if you sold $1k worth, and the value had gone up by 10%, then you would essentially be selling ~$910 of the original stock and $90 of "gain". You would be taxed 15% or the $90. Is that roughly correct?
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Steve '08 Boxster RS60 Spyder #0099/1960 - never named a car before, but this is Charlotte. '88 targa  SOLD 2004 - gone but not forgotten
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03-07-2017, 05:00 PM
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Registered
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Was the mutual fund purchased all at once or over a period of time? Assuming you purchased at once then your above assumption above the $90 gain would be taxed at 15% and recorded on schedule D.
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03-07-2017, 07:03 PM
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Back in the saddle again
Join Date: Oct 2001
Location: Central TX west of Houston
Posts: 56,234
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Yes, all at once. Great, thanks.
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Steve '08 Boxster RS60 Spyder #0099/1960 - never named a car before, but this is Charlotte. '88 targa SOLD 2004 - gone but not forgotten
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03-07-2017, 07:08 PM
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Registered
Join Date: Mar 2005
Location: Northern CA
Posts: 4,703
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In addition to U.S. capital gains tax you may have state capital gains tax in addition. E.g in CA we do. In CA cap. gains are considered ordinary income. This is one of many reasons it is expensive to live in CA. Accountants - please correct if I'm mistaken.
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Sold: 1989 3.2 coupe, 112k miles |
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03-08-2017, 05:29 AM
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Back in the saddle again
Join Date: Oct 2001
Location: Central TX west of Houston
Posts: 56,234
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Quote:
But thanks for the note.
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Steve '08 Boxster RS60 Spyder #0099/1960 - never named a car before, but this is Charlotte. '88 targa SOLD 2004 - gone but not forgotten
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03-08-2017, 08:26 AM
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1979 Porsche Turbo
1999 Toyota 4Runner
