Question
Capital gains taxes, income taxes and when should I cash out of my stocks?
My husband and I invested our very first $3,000 into one company back in November 2008. These shares are now worth $66,000 - we are very happy! We are wondering when the best time is to cash out of these shares. We don't foresee that they'll climb much higher than $72,000 but as with any volatile market, they could drop significantly - it's a risky venture. I'm mindful of short and long term capital gains taxes (35% and 15% respectively) but don't know how income tax also works - will I have to pay this too? When would be the best time to cash out based on the capital gain of our stock? How much can we expect to see after the government takes their cut? We'll be pushed up to 28% income tax if we earn another $10,000. Thank you for your help! I've been trying to understand everything, but am not mathematically or economically minded and need some good advice. Rochelle
2 months ago - 1 answers
Best Answer
Chosen by Asker
sounds like a terrific investment, so many have lost money however if you think the peak has come and not a lot more will happen with this stock, you could cash out but you do need to consider that this capital gain(the difference sale less purchase price) will effect your current tax situation if it does not appear that it will hurt you and you feel you want to unload it, they be all means, and yes, you probably will be in the 28% bracket or possibly one more step more
by tro
2 months ago
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