Buying Selling Stocks Taxes
Buying and Selling Stock?
Please realize I am learning here. So if I buy stock and sell it in a couple of months, but reinvest it immediately into another stock, what kind of tax liability am I looking at.
If you made money on the trade then you will have to pay taxes on it regardless of whether you immediately reinvest the money into another stock. If you held the stock for less than 12 months you will have to pay taxes on the profit at your regular income tax rate. If you held it longer than 12 months than you pay taxes on the profit at the current capital gains rate which I believe is 15%. Note that the government constantly messes with the capital gains rate and it could change in the future. Or, if Obama becomes president, it could be wiped out all together.
Hope that helps.
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