Hello
Some of the stocks I bought this year, I am not planning to sell them yet in 2014. May be in 2015 i will sell. So, when I am doing my 2014 taxes next spring, I will do nothing about these stocks yet correct? Because gain or loss will not be realized as of 2014 correct?
buying this year and selling next year
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Re: buying this year and selling next year
Buying is not a taxable event; selling is (other than in the fairly unusual case of short selling).
So you won't have any taxable events this year if all your transactions are purchases; thus, you won't have anything to report next year when you do this year's taxes.
So you won't have any taxable events this year if all your transactions are purchases; thus, you won't have anything to report next year when you do this year's taxes.
In theory, theory and practice are identical. In practice, they often differ.
Re: buying this year and selling next year
Buy this year sell next year is not an investors time frame.ketanco wrote:Hello
Some of the stocks I bought this year, I am not planning to sell them yet in 2014. May be in 2015 i will sell. So, when I am doing my 2014 taxes next spring, I will do nothing about these stocks yet correct? Because gain or loss will not be realized as of 2014 correct?
Re: buying this year and selling next year
you are saying "all". I bought and sold some also. so those i will report, but i won't have to do anything yet for the ones i just bought and holding right?technovelist wrote:Buying is not a taxable event; selling is (other than in the fairly unusual case of short selling).
So you won't have any taxable events this year if all your transactions are purchases; thus, you won't have anything to report next year when you do this year's taxes.
Re: buying this year and selling next year
Right.
Meet my pet, Peeve, who loves to convert non-acronyms into acronyms: FED, ROTH, CASH, IVY, ...
Re: buying this year and selling next year
You won't pay any tax on the capital gains until you sell; if you buy in 2014 and sell in 2044, you will pay tax only in 2044 on the entire price change over those 30 years.ketanco wrote:Some of the stocks I bought this year, I am not planning to sell them yet in 2014. May be in 2015 i will sell. So, when I am doing my 2014 taxes next spring, I will do nothing about these stocks yet correct? Because gain or loss will not be realized as of 2014 correct?
However, if your stocks pay dividends, you will have to pay tax on the dividends; your broker will give you a 1099-DIV which shows how to report them.