Welcome Guest. Register Now!  


For 2014 Tax Tips For Year 2014.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-12-2015, 04:17 PM
Junior Member
 
Join Date: Nov 2014
Posts: 3
Another short term capital gains question

So lets say you work for Walmart have no dependents and made $40,000 dollars in 2014. And lets say during that year between January 1st and December 31st you made only two investments (to keep things simple) both of which were short-term. Lets say you purchased stock in MSFT and sold it 3 days after purchasing it resulting in a gain of $500. Then lets say later in the year you purchased stock in GM and sold it 2 days after purchasing it resulting in a loss of $300. As I understand it since your income from work was $40,000 you would fall into the 25% bracket.

But here is my question. How much would you owe in taxes from these two short term sales. Would you owe 0.25*(500)=$125 in taxes such that the $300 loss wouldn't be counted. Or would you owe 0.25*(500-300)=$50.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-12-2015, 05:04 PM
Junior Member
 
Join Date: Nov 2014
Posts: 3
As an addendum to this question imagine instead you gained $15000 for the MSFT sale and lost $60 for the GM sale. Would you owe 0.25*(15000)=$3750 or 0.25*(15000-60)=$3735. I just added this because I read about the $3000 deduction maximum and wasn't sure how it works.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
0% Long Term Capital Gains accident_prone4life Capital Gains 1 12-02-2014 05:14 AM
short term capital gains question asdbnm For 2014 1 12-01-2014 02:51 AM
Do K-1 Losses offset Short Term Capital Gains? jvc714 For 2014 1 11-26-2014 03:40 AM
Accidently misclassified a capital gains transaction as short term rather than long term janelee Capital Gains 1 04-17-2014 06:50 AM
Capital Gains on a Short Sale? 99980000 Capital Gains 0 04-08-2009 10:20 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning