New Investor Tax Question

Discussion in 'Ask any question!' started by NGrossi, Jan 28, 2021.

  1. NGrossi

    NGrossi New Member

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    I just put money into stock this week will I have to claim them on my 2020 taxes or will I report them next year I just want to avoid a refile or audit
     
  2. T0rm3nted

    T0rm3nted Moderator
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    If you just bought stock right now, you'll pay taxes on the profits only after selling. So the earliest year you'll be paying taxes on would be for your 2021 filing. If you hold until January 1, 2022 - then the earliest you'd pay taxes on THE PROFITS would be in your '22 filing.
     
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  3. NGrossi

    NGrossi New Member

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    Thanks so much its just very confusing Im younbg and trying to have some savings for when needed. and would you reccomend using something like public or robinhood or should I go traditional with like fidelity
     
  4. T0rm3nted

    T0rm3nted Moderator
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    I would use something more reliable like Fidelity.
     
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  5. NGrossi

    NGrossi New Member

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    Thanks :) for the advice I appreaciate it as Im new to the scene and need to learn my risk tolerance :)
     
  6. MackenziePhil

    MackenziePhil New Member

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    I guess the fact that the question has been answered, there's nothing more to add to it. Let us know the end of the story. Basically, investment income such as interest and rent is considered ordinary income and will generally be taxed according to your ordinary income tax rate. Qualifying dividends are also taxed at long-term capital gains rates (dividends that don't qualify for long-term capital gains rates are taxed at ordinary income tax rates). I know that the guys from Szweda Consulting could consult you on your issue and give you the financial advice you were looking for.
     
    #6 MackenziePhil, Mar 26, 2021
    Last edited: Mar 28, 2021
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  7. spindr0

    spindr0 Active Member

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    Go with a traditional no commission broker (Fidelity, Schwab, Ameritrade, E*Trade, etc.). Robinhood is a second rate mickey Mouse operation.
     
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  8. Rustic1

    Rustic1 Well-Known Member

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    I fully agree with Tormented and spindr0. My main broker is Schwab, they are also a full service bank.

    The better brokers are the only way to fly, unlike robinhood and the other nickel and dime outfits.
    The big guys have better features and also have a telephone that you can actually speak to someone, that is very important to me.

    Check around, some have promotions that pay you to sign up with them. Best of luck.
     
  9. joantucker

    joantucker New Member

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    You will need to calculate the taxes from them when you will get the income. This is how it works. You don't need to calculate them with the taxes for the previous year when you have invested. At least, this is how it works in Quickbooks. It is bookkeeping software. I found out about it on playlouder.com, and I decided to learn how to use this software. I am using an accountant for personal purposes, so I decided to learn how to work with bookkeeping software and do my accounting by myself. It is a good way of saving some money.
     
    #9 joantucker, Sep 14, 2021 at 6:00 AM
    Last edited: Sep 18, 2021 at 4:41 AM

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