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As a tax preparer this was all great info to share with people. Since taxes impact just about everybody (keywords “just about”), I always encourage people to learn the basics for their own benefit!
Brian thank you! These videos are extremely helpful. Especially since this is the first year I will be doing taxes with a substantial income. Soon it will hopefully be a substantial income as a small business. Anyways Hope you have a great holidays man!
This may be the best summary I've heard on this topic. Thank you. The one addition I would make would be on the capital gains part. It's not closing COMPLETELY on the position. It's by individual purchase. It may have been awkward to explain, so it's good enough; but only 99% accurate.
He makes everything so easy to understand. With pictures, grapes, coloring and lettering, it’s just God send for someone like me who is just beginner in the field. It’s better than anything. 정말 감사합니다.
Do the profits/losses we need to report for IRS/Taxes also include day trading and options or only stocks? Also, can we claim gains/losses on foreign stock investments like NIFTY/HKSE ?
The tricky part about long-term gains is if you are adding to your position throughout the year. The full year begins on the day of your last purchase if you want to sell it all after a year. 366 days
The holding period for each share beings on the day you purchased that share. You specify which shares you want to sell, or set it for FIFO - first in; first out. And why would you sell it all at once?
The one watch out I’ve experienced myself several times. Your tax documents can be amended by your brokerage after initial release. I never do my taxes before March 15th for this reason, I usually do them on April 1st. You’re usually safe by then.
Does this apply to to retirement accounts like IRA’s or 401k’s? To my understanding all the income is simply tax deferred until you physically remove it.
Thanks for the information. Question, is the 3k limit on capital loss limited to stocks or is that the overall limit you can claim for the calendar year? I have other investments (property) and wanted to know how claiming stock losses would impact other investments. Thanks again
You can use all your capital losses (beyond $3k) to offset your other capital gains (whether they be from the stock market, crypto, art, properties, etc). If you have more capital losses than capital gains, then you are capped at using $3K of capital losses to offset your non-capital gain income (such as wage income, interest income, dividend income, business income). I hope that helps!
Can you make video on how dividends are taxed? and how tax would look like if you invest in dividend stock overtime over the year(s) and how the taxes work in those scenarios?
Are any of the brokerage fees deductible? Are they considered part of the costs basis when you buy the stock? Are gambling/lottery losses part of the $3k per year limit?
Thank you for this thorough video! Can you explain the tax implications from investing in index funds or ETFs in taxable brokerage accounts please…and ways to reduce taxable gains in those accounts??
Brian, another good question. If I buy one share of Tesla in January and another in June but sell one share of Tesla, the following February. Will I pay short term or long-term capital gains tax?
Thank you for clarification. Do these taxes apply the same way investing through an S-Corp entity? Is there any tax advantages or deductions in investing through an S-Corp entity?
Hi Brian If you lost 20k this year so can didact 3k and will have 17k on not used and next year make 17k can I use the previous year loss on this year profit?
Yes, in your example, you could use the full $17K of losses to offset your $17K of capital gains. The $3k loss limitation is only applicable if you have more capital losses than capital gains (to offset against other non-capital gain income - such as wage income, business income, interest income, dividend income, etc). I hope that helps!
Hi, I love your financial videos. Keep them coming . Couple of questions for you, Q1: On the $3000 limit (loss) for taxable income deduction, if you are married and filing jointly, would the number go up?? if so how much?? Q2: If you re-invest the dividend on the same stock do you still pay taxes on the dividend for that year? Thanks
Hi! This my first year playing the stocks! You said the mid February they gonna send out taxes. Are they gonna send to your house? If not how do I get it! Thank you for your help!
They’re taxed when they DRIP back. It’s no different than receiving the dividend and you buying more of the stock. It’s a good question but it’s more of a convenience thing than a tax deferral thing.
These are the kind of courses we should’ve all been taking in high school.. Instead they gave us the breakdown on how to get into college (debt) and fafsa 😂 ..That’s messed up
Do you have to pay taxes for interest and dividends generated from investments within an IRA or 401K? (Assuming i am not yet taking any distributions from any of those account).
If your Stock interest and dividends are set to automatically reinvest within the brokerage account, is that a taxable event, or do you only pay taxes when you withdraw from your account?
Hi Brian. Thanks for this helpful video. With regard to the 1099-INT, if some interest is only taxed at the federal level (T-Bill interest) and some is taxed at all three levels (fed., State, local) will the 1099-INT separate out the the two types of interest interest for you or do you have to do that yourself via checking your brokerage account history of interest gained over the year? Thank you.
If I buy some stocks then 6 months down the line. I buy more of the same stocks. In order to get the tax free. Do I have to only sell the stocks I bought before the second order, do it rollover into the first order?, or do I have to wait another year?
Hi I want to ask you about tax claim. Last year I lost in stock market around 40,000 after I wrote off 3000. So I carried 37000. This year I make some profit like 10,000. May I know how much can I write off this year please? 1. Only 3000 and carry 34000 next year 2. 37,000-10,000 (capital gain) and carry 27000 3. 37000-10000 (capital gains) -3000 for this year= carry 24,000
Your answer for this question is #3. You can write-off your capital losses to the extent of your capital gains ($10K) and then $3K more to offset against any other non-capital gain income. So you'll use $13K of losses. that will bring your loss balance to $24,000, which will carry-forward into 2024.
So you’re saying that if you bought $500 of stock and, by some insane miracle, it grew to $100K over 365 days, and you were somehow in the 10% tax bracket, then NONE of that $100k would be taxed?
Can i play this way? Example 2022 my 50k invest On 2023 my investment goes to 150k i dont sell But i sell when my investment down to 100k And With 100k i bought another stock My stock become 300k on 2024 Can i used that 50k capital lost i got on 2023 for 2024 tax report?
Very good video, thank you! For 2024 the 'no capital gains' limit is 47k of 'taxable income. Do stock sales, dividends and interest count as 'taxable income' or is that limited to wages etc? Thanks again!
You said if I’m in the 10% tax bracket that I would pay 0% on my long term capital gains. So if I owned my own company and paid myself $1 per year, would that allow me to pay 0% on long term capital gains?
Hello Brian and thank you for the nice video. Could you please answer me which is the amount of taxes in stocks for not US Citizens ? Thank you so much !
Does this mean that you have the entire year to not report to IRS if you lost? If you had capital gain, at the beginning of the year, would you need to report per quarter or can you wait till next year? I'm wonder about reporting to IRS in relation to $1000 limit that you can owe IRS before getting fined.
Yes, they will carry forward behind the scenes in schedules that are not part of the tax forms that you file. It will be in your historical records within your software history (the worksheets).
Hi, how are we taxed when rolling options? If I sell a call option for $1 and then i buy back the call option for $5 and sell another call 2 weeks out for $6 all in the same day. Will i get taxed for $7 or the net of $2?
At retirement I rollover my 401k to an existing Ira that has mutual funds in it. When I decide to take money out of the Ira will I have to pay short term or long term capital gains
