Just out of curiosity...

[wnied]

If someone had a stock blow up on them, and it was worth in excess of two hundred thousand dollars, how might someone move the money out of the stock without having to pay a heavy short term capital gains tax on it??

Just curious

~wnied~

 

[FoBoT]

its your patrotic duty to pay more taxes to help heal the country and tax evasion is a felony

 

[imported_Lothar]

Hold the stock for more than a year?

 

[Insomniator]

I don't know but I would try to do anything to get out of it.

Capitol gains is what.. one of 11 ways your same money gets taxed over and over again by the gov?

 

[Ns1]

Originally posted by: wnied
If someone had a stock blow up on them, and it was worth in excess of two hundred thousand dollars, how might someone move the money out of the stock without having to pay a heavy short term capital gains tax on it??

Just curious

~wnied~

Hold it for more than a year.


(and yes, I know that was not the point of the post)

 

[DaveSimmons]

Sell some of the other stocks that you lost money on to balance the gains?

Buy a house? The $8.5K credit will pay the taxes on $25K of your gains.

Traditional IRA? Shift $5K of your overall income into tax-deferred retirement.

You don't have to sell all of your shares this year, January is only 4 months away.

 

[darkxshade]

Originally posted by: Lothar
Hold the stock for more than a year?

Originally posted by: DaveSimmons
Sell some of the other stocks that you lost money on to balance the gains?

 

[spidey07]

Originally posted by: DaveSimmons
Sell some of the other stocks that you lost money on to balance the gains?

Yep. There's no way around it. If you sell it it is a gain of capital, capital gains.

I forget how much loss you can deduct. Either way they're gonna get their money.

 

[TruePaige]

If it is a stock sure to stay steady, hold fast until next year.

If you need to sell you have lots of ways to lower your tax burden.

1) Take a few classes for a semester, use the HOPE / Lifetime Learning / Textbook Aid credits
2) Still have student loans? Throw the money at them and take a deduction for interest paid.
3) Sell some loser stocks that you have little hope of bouncing back.
4) Buy a hybrid and take a tax deduction (if the program is still open)

Lots of ways to lower your tax burden.

 

[vi edit]

Originally posted by: spidey07

Originally posted by: DaveSimmons
Sell some of the other stocks that you lost money on to balance the gains?

Yep. There's no way around it. If you sell it it is a gain of capital, capital gains.

I forget how much loss you can deduct. Either way they're gonna get their money.

If memory servers correct, it's only $3,000, but you can keep rolling it for years. For example if I lost $12,000, I can only write off $3000 this year. But for the next three years I can keep rolling that loss out at 3k a year until it's gone.

 

[wnied]

So then someone wouldnt be able to say....sell the stock off, collect the money and purchase a house and say its their primary residence, and not be taxed for capital gains?

~wnied~

 

[spidey07]

Originally posted by: wnied
So then someone wouldnt be able to say....sell the stock off, collect the money and purchase a house and say its their primary residence, and not be taxed for capital gains?

~wnied~

Why would you even think that? That only applies if sold your primary residence (capital gains from sale are not taxed if used for another primary residence), not a stock. You don't live in a stock, you must pay STCG on it.

 

[SearchMaster]

Originally posted by: spidey07

Originally posted by: wnied
So then someone wouldnt be able to say....sell the stock off, collect the money and purchase a house and say its their primary residence, and not be taxed for capital gains?

~wnied~

Why would you even think that? That only applies if sold your primary residence (capital gains from sale are not taxed if used for another primary residence), not a stock. You don't live in a stock, you must pay STCG on it.

I think he was confused by DaveSimmons' advice that putting the money into a house, assuming first time homeownership, would achieve a $8K tax credit as long as it's done in the next few weeks. This would be the equivalent of the taxes on about $25K of the capital gain.

OP, the laws are there for a reason. You can offset some of the gain through creative accounting but the reality is you owe the money.

 

[spidey07]

Originally posted by: SearchMaster

Originally posted by: spidey07

Originally posted by: wnied
So then someone wouldnt be able to say....sell the stock off, collect the money and purchase a house and say its their primary residence, and not be taxed for capital gains?

~wnied~

Why would you even think that? That only applies if sold your primary residence (capital gains from sale are not taxed if used for another primary residence), not a stock. You don't live in a stock, you must pay STCG on it.

I think he was confused by DaveSimmons' advice that putting the money into a house, assuming first time homeownership, would achieve a $8K tax credit as long as it's done in the next few weeks. This would be the equivalent of the taxes on about $25K of the capital gain.

OP, the laws are there for a reason. You can offset some of the gain through creative accounting but the reality is you owe the money.

He wouldn't qualify for the 8k anyway. Made too much money.

 

[TuxDave]

Originally posted by: wnied
So then someone wouldnt be able to say....sell the stock off, collect the money and purchase a house and say its their primary residence, and not be taxed for capital gains?

~wnied~

The money used for house purchase isn't tax deductible. It's the interest you pay on the mortgage that is.

 

[DaveSimmons]

Originally posted by: spidey07

Originally posted by: SearchMaster

Originally posted by: spidey07

Originally posted by: wnied
So then someone wouldnt be able to say....sell the stock off, collect the money and purchase a house and say its their primary residence, and not be taxed for capital gains?

~wnied~

Why would you even think that? That only applies if sold your primary residence (capital gains from sale are not taxed if used for another primary residence), not a stock. You don't live in a stock, you must pay STCG on it.

I think he was confused by DaveSimmons' advice that putting the money into a house, assuming first time homeownership, would achieve a $8K tax credit as long as it's done in the next few weeks. This would be the equivalent of the taxes on about $25K of the capital gain.

OP, the laws are there for a reason. You can offset some of the gain through creative accounting but the reality is you owe the money.

He wouldn't qualify for the 8k anyway. Made too much money.

It depends on how much of the stock he sells this year and how much other income he has.

I was saying you can make $8.5K in stimulus money, and use that money to pay for some of the capital gains taxes which you will still owe. The house purchase doesn't lower your taxes you just get a nice rebate from the government.

You can also deduct mortgage interest, but you lose your standard deduction if you do so it probably won't help for 2009.