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You would NOT have a capital gain tax to pay when you have a loss on the sale of stock.
You WILL HAVE to report the transaction on the schedule D of the 1040 tax form and up to 3000 of loss for the year will be used to offset up to 3000 of ordinary income for the year any amount of the remaining loss will then be carried over to the next years until the loss is completely used up.
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What is the short term capital gain rate for stocks?
The short term capital gain on a stock held for less than one year is the rate you pay on ordinary income.
Where do capital gains come from?
If you buy a house, stocks or just about anything, you will have a capital gain or loss on the sale. If you have a gain, you pay tax immediately. If you have a loss, you can write that off $3,000 per year. Most people say this is unfair to a person who has lost a lot in the stock or housing market. If you lose money on your home, it is not deductible. If you gain money on your home, if is taxable above an exemption. Some economist say if you buy a house and then sell it and buy another, why would you pay capital gains. You still have a house. The only thing that has changed is inflation on of the money supply.
If an individual reported capital gain in 2007 and had to pay a medicaid penalty in 2009 can this penalty amount be counted as a capital loss against the capital gain?
The medicaid item is NOT a deductible amount of any nature (penalties to start generally aren't and medicade contributions aren't either). And certainly in any regard would not be a capital item ever. Medicaide is NOT a capital asset, it may have a cost, but you do not have any basis invested to calculate a gain or loss from. (Consider that what your thinking would then mean every payment or coverage you receive would then have to be a capital gain).
Does precious metal miners pay capital gain tax?
They would have to pay ordinary income tax on gains from mining. This would not qualify as a capital gain.
You purchased land 20 years ago for 20000 and this year sold it for 17000 so do you have to pay taxes on the 17000 this year?
No. This should be treated as a capital gain/loss. If you bought the land for $20,000 and sold it for $17,000 you do not have any income or a gain. On the contrary, you have a $3,000 capital loss which can be used to offset some of your income and decrease your taxes.
Do you have to pay tax on a capital loss?
No, in fact it reduces any capital loss and even ordinary income (within limits)
Do you have to pay taxes on coins that you sell?
Yes as collectibles. These are capital assets except when they are held for sale by a dealer 9in which case they are inventory). Any gain or loss you have from their sale or trade generally is a capital gain or loss, like any other investment. If you had a collectibles gain on the sale the amount will be taxed at the 28% rate, unless your ordinary tax bracket is less, in which case you get a special lower gains rate.Almost everything owned and used for personal or investment purposes is a capital asset. Examples are a home, household furnishings, and stocks or bonds held in a personal account. When a capital asset is sold, the difference between the basis in the asset and the amount it is sold for is a capital gain or a capital loss. If you received the asset as a gift or inheritance, refer to Topic 703 for information about your basis. You have a capital gain if you sell the asset for more than your basis. You have a capital loss if you sell the asset for less than your basis. Losses from the sale of personal-use property, such as your home or car, are not deductible.Capital gains and losses are classified as long-term or short-term. If you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.Capital gains and deductible capital losses are reported on Form 1040, Schedule D (PDF). If you have a net capital gain, that gain may be taxed at a lower tax rate than the ordinary income tax rates. The term "net capital gain" means the amount by which your net long-term capital gain for the year is more than the sum of your net short-term capital loss and any long-term capital loss carried over from the previous year. Currently net capital gain is generally taxed at rates no higher than 15%, although, for 2008 through 2010, some or all net capital gain may be taxed at 0%, if it would otherwise be taxed at lower rates. There are three exceptions:The taxable part of a gain from selling Section 1202 qualified small business stock is taxed at a maximum 28% rate.Net capital gain from selling collectibles (such as coins or art) is taxed at a maximum 28% rate.The part of any net capital gain from selling Section 1250 real property that is required to be recaptured in excess of straight-line depreciation is taxed at a maximum 25% rate.If you have a taxable capital gain, you may be required to make estimated tax payments. Refer to Publication 505, Tax Withholding and Estimated Tax, for additional information.If your capital losses exceed your capital gains, the amount of the excess loss that can be claimed is the lesser of $3,000, ($1,500 if you are married filing separately) or your total net loss as shown on line 16 of the Form 1040 Schedule D, Capital Gains and Loses. If your net capital loss is more than this limit, you can carry the loss forward to later years. Use the Capital Loss Carryover Worksheet in Publication 550, to figure the amount carried forward.Additional information on capital gains and losses is available in Publication 550, Investment Income and Expenses, and Publication 544,Sales and Other Dispositions of Assets. If you sell your main home, refer to Topics 701 and 703, or to Publication 523, Selling Your Home.
What are the tax rates on short term capital gains and long term capital gains for a student with no income but who has 10000 in the stock market?
There is no such animal as a short term capital gain or loss... When you hold the stock for a year or more it is treated as capital and the tax rate on your realized gains is (currently) 15%. If you sell out and had held for less than a year, your gain or loss is netted together with other ordinary income such as the pay you get from a regular job, and is subject to the same tax rates as for your regular paycheck.
I know I must pay capital gains taxes but do I have to pay before I can get my profits?
A capital increases charge is a duty on the benefit that a financial backer makes from the offer of a venture like stock offers. On capital gains, advance tax must be paid. However, in order to pay his advance tax installment, one cannot accurately estimate the capital gain advance. Therefore, if a taxpayer has a capital gain after the advance tax installment due dates, the tax on that gain must be paid in the remaining installments.
State and explain differences between insurance and ledging?
Hedging eliminates the risk of loss by giving up the potential to gain. With insurance you pay a premium to avoid loss and keep the potential to gain.
Do you have to pay taxes on stocks?
You have to pay taxes on the profits when you sell or otherwise dispose of the stocks. You also have to pay taxes on dividends.
In the US do pay capital gain tax on money brought in from another country?
Just fro bringing it in, no.
