Lets say you bought tesla stock at $500 and it went up to 900. Do you sell it right away? Is there a fee or tax thing? I'm new to stock and want to invest some. Thank you Tc 150k #stock
google - short term, long term capital gains
If these are your questions, you have no business investing in individual stocks. Just max out your 401k and IRA and buy broad-market ETFs (VOO or VTI are the best) and donât touch them. Donât even look at the balances until you retire. Day trading is never a successful strategy in the long run. If you have already maxed those, then put your money in wealthfront.
I would recommend not doing stocks if you donât understand this. There could be commissions, but most platforms have gotten rid of this. Youâll definitely owe taxes on any gain and itâs your responsibility to handle it. Trading apps wonât withhold for you. If itâs a large enough gain, you may have to pay taxes one-off to avoid over payment.
Sounds pretty complex đą
You could sell it right away if you want, or if you believe the stock would be at a higher price in 5 or 10 years, you can hold. Depends on your investment goals. If you sell, you pay a small transaction fee (4-6$), sometimes you donât even pay that. When you pay taxes, youâll pay tax on the profit you made from selling the stock (900-500=400$ taxable income).
Thats what I thought but wasn't so sure. I believe Robinhood has no fee, right? And if I pay tax for the $400, it should be same as tax % that I pay at my employer.?
If you hold it for at least 1 year, you'll pay much lower tax on the profit. Google long term vs short term capital gain
If you are using a brokerage, like Ameritrade, there may be a trade fee of a few bucks. They take no % cut or anything like that, if thatâs what you were thinking. On taxes, if you sell (at loss or profit), you brokerage will send you a tax form (similar to a W2) that youâll use to enter the income on your tax return. Itâs taxed differently than your income from wages/salary.
I use Robinhood app. No fee. Wait, how do i know how many % tax i need to pay?
Ameritrade does not have any fees https://www.google.com/amp/s/markets.businessinsider.com/amp/news/td-ameritrade-to-eliminate-online-stock-etf-fees-before-schwab-2019-10-1028570971
Itâs simple. Donât listen to other idiots here who try to shove you down. If you sell within a year of buying stock, you will be paying taxes on short term capital gain, if you sell after an year of buying, it is long term capital gain. Just google for the difference between the two. These days most brokers have made commission fee trades. So you should not be having any fee for selling, even if it does, itâs just fee dollars
Just get that pdf from robinhood, feed it to turbo tax and you are done. Hire a CPA if you are truly clueless. I always get one.
yes u sell right away yes there is a tax thing, all profits are taxed
Depends on your long term and short term goals. Thereâs no right or wrong answer.
Things you should understand before buying stocks. Whatâs with the tagged companies?
Just to get more insights. I'm at 1 of those companies
Itâs spam. Stop