tax question

cadalano · Post by **cadalano** » February 8, 2006, 3:04 pm

Is there a way that I can determine the tax rate that would be applied to short-term capital gain from selling stock? By that I mean stock purchased and sold on the market, not from an employer plan.

From what I gathered on IRS.gov, it should be 15%, and basically lumped up with any other gains. I did see this though which confused me:

The taxable part of a gain from qualified small business stock is taxed at a maximum 28% rate.

I have no idea if that means anything to me. Not sure what a "small business stock" is. I emailed the IRS but I imagine it will be awhile before I hear back, so I figured I'd fish here too.

masteen · Post by **masteen** » February 8, 2006, 3:18 pm

Short-term cap gains are taxed at the 28%. Long-term (where you held the stock for 2 years or more) are taxed differently.

Xyphir · Post by **Xyphir** » February 8, 2006, 7:11 pm

Long-Term is defined by the IRS as an asset being held for more than ONE year, not two. You'll need to file a Schedule D with your 1040. I've linked the instructions. All the info you need should be there.

Voronwë · Post by **Voronwë** » February 8, 2006, 11:54 pm

Short Term Capital Gain is 25% i thought.

Long Term is 10 or 15%

Deward · Post by **Deward** » February 17, 2006, 1:21 pm

Use turbo tax. They take care of those calculations. I am still getting deductions from 4 years ago and they have kept track of it the whole time.