Comments on: Tax Basics for Investors http://www.youngmoney.com/investing/investing_basics/316_543/ Money: Earn it, Invest it, Spend it Sun, 05 Feb 2012 17:05:17 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: JOHN R. http://www.youngmoney.com/investing/investing_basics/316_543/comment-page-1/#comment-2372 JOHN R. Tue, 27 Oct 2009 22:15:26 +0000 http://75.145.89.9/?page_id=543#comment-2372 do you have to stay out of the stock you sold for 30 days before you can buy back in so as to not loose your long term capatiol gains ? do you have to stay out of the stock you sold for 30 days before you can buy back in so as to not loose your long term capatiol gains ?

]]> By: Ranger Bob http://www.youngmoney.com/investing/investing_basics/316_543/comment-page-1/#comment-478 Ranger Bob Tue, 28 Oct 2008 08:52:15 +0000 http://75.145.89.9/?page_id=543#comment-478 I think there's a couple mistakes in this article. Feel free to chime in if I'm wrong. "First, dividends and interest (such as from a money market fund or a bank account) are taxable as ordinary income..." Interest income is ordinary income. However, dividends are usually treated as long term capital gains. Exceptions would include distributions from MLPs and most bond income. "However, if you hold a stock for twelve months or longer, the Long-Term capital gains tax rate kicks in. For most taxpayers, that's just 20%" The 10/20 rates were replaced by 5/15 in 2003. This lasts until 2010. After that, it depends on who's president. There's a zero rate in 2008 too, for certain incomes conditions. There are also 25 abd 28% conditions, but those are really limited. Overall, most people will be paying 15% on long term capital gains. Morp: Yes, you just report the dividend income. You should receive a 1099-DIV. You don't report share information until you sell. I think there’s a couple mistakes in this article. Feel free to chime in if I’m wrong.

“First, dividends and interest (such as from a money market fund or a bank account) are taxable as ordinary income…”

Interest income is ordinary income. However, dividends are usually treated as long term capital gains. Exceptions would include distributions from MLPs and most bond income.

“However, if you hold a stock for twelve months or longer, the Long-Term capital gains tax rate kicks in. For most taxpayers, that’s just 20%”

The 10/20 rates were replaced by 5/15 in 2003. This lasts until 2010. After that, it depends on who’s president. There’s a zero rate in 2008 too, for certain incomes conditions. There are also 25 abd 28% conditions, but those are really limited. Overall, most people will be paying 15% on long term capital gains.

Morp: Yes, you just report the dividend income. You should receive a 1099-DIV. You don’t report share information until you sell.

]]> By: Morp http://www.youngmoney.com/investing/investing_basics/316_543/comment-page-1/#comment-360 Morp Mon, 22 Sep 2008 02:27:32 +0000 http://75.145.89.9/?page_id=543#comment-360 Are capitol gains reported on a 1099 form? If I understand this right, I can buy and hold some etf's and I won't have to worry about reporting any capitol gains/losses until I sell my shares. However, I would have to report any dividends earned each year. Is it fairly simple to report dividends, meaning I don't have to worry about reporting the number of shares purchased and at what price every single year? Thank you! Are capitol gains reported on a 1099 form? If I understand this right, I can buy and hold some etf’s and I won’t have to worry about reporting any capitol gains/losses until I sell my shares. However, I would have to report any dividends earned each year. Is it fairly simple to report dividends, meaning I don’t have to worry about reporting the number of shares purchased and at what price every single year? Thank you!

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