How much per trade to account for tax?

Advice Pro · #1 (**permalink**) 06-21-09, 03:11 PM

I've read that 15% should be considered for tax. I think that this is too much and I also think shares do need to be accounted for as well.

Fredledingue · #2 (**permalink**) 06-21-09, 06:45 PM

I think it's 15% of the gain you make on the trade. If you lose or earn nothing you don't pay any tax.
In some countries you don't pay tax if you hold your shares for more than one year.
HTH

Pearlpam · #3 (**permalink**) 07-06-09, 09:22 AM

Short term gains are 5% or 15% depending on tax bracket. The fact you have money to trade means your most likely in the 15% bracket (I think the cutoff is 25% income tax bracket or higher = 15% on gains). Long term capital gains are taxed at 10% if you hold more than a year. Dividends are considered long term capital gains as well, regardless of holding period.

onlinetrading · #4 (**permalink**) 07-09-09, 06:20 AM

Hi,
I am also agree with 15 % !

aquaswim47 · #5 (**permalink**) 07-12-09, 03:30 PM

Quote:

Originally Posted by onlinetrading

Hi,
I am also agree with 15 % !

Yeah, unless you make $80,000 per year as a couple or $40,000 per year as an individual, 15% is fine. But if you have combined earnings between your earnings and investments that is greater than $42,000 ($84K if married), you should allocate 25%. That way, you can continue to take 2 exemptions at work. Just pay quarterly the funds you owe x your tax bracket. If it is 15%, use 15%. If it is 25%, use 25%. Only if you hold for more than a year does the 15% and lower 5% rate apply.

allangering · #6 (**permalink**) 08-13-09, 06:02 AM

I think 5% or 15% rate per trade.Citizens will be obligated to pay the $1,960 amount for eight years. Based on these figures each household will pay $15,680 over that period of time. That is not a tax on the rich but every household.

Jenn Vivyan · #7 (**permalink**) 08-28-09, 01:46 PM

You will be taxed on any net profits you make.
If you were keeping the investment for more than 1 year, it would be eligible for the capital gains rate of 15% (5% for lower bracket taxpayers). The reduced rate is scheduled to end after 2010 and the rate will go back to 20% max.
Since you are not, the gains are taxed at your regular tax rate. For many, the rates are much higher than the 15%/5% capital gains rates