I’d love a gut check here on taxes - we are using an H&R Block person but I’m not convinced the calculations were done correctly. My husband was issued shares of his employer, a privately held company, in early 2020 according to his 1099b (of which there are multiple, im not entirely sure why). The forms all say it was held until later in 2021, so over a year. Our accountant is saying we are going to be taxed in the 32% bracket, because income from the shares being sold is included (cont)
Rising Star
Not sure I understand the question. You can sell a stock at any time for any reason.
Conversation Starter
Ah okay I heard that sometimes a gain is not a gain if you subtract taxes and fees, so I was wondering if there was any downside in cashing out on a tiny return. I made couple hundred but I realized I’m too much of a coward to invest in individual stock and want to settle
Re taxes - depends on how long you held the stock. To avoid tax time surprises, I *strongly* suggest you read up on capital gains taxes, and also how losses can offset gains up to certain limits per year. Taxes are typically not withheld on sale, so if you expect to owe you’ll need to have the cash to pay them on hand in the spring when filing income taxes.
Conversation Starter
Ohh thank you! 🙏🏻
Rising Star
For normal cash equity (stocks) the transaction fees involved are less than .1% or ball parking, 5 cents per share. If your profit per share is more than that, you can confidently lock in your gains.