New Investor Tax Question

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

  1. NGrossi

    NGrossi New Member

    Joined:
    Jan 28, 2021
    Messages:
    5
    Likes Received:
    0
    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
    Staff Member

    Joined:
    Apr 2, 2016
    Messages:
    8,447
    Likes Received:
    3,268
    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.
     
    spindr0 and NGrossi like this.
  3. NGrossi

    NGrossi New Member

    Joined:
    Jan 28, 2021
    Messages:
    5
    Likes Received:
    0
    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
    Staff Member

    Joined:
    Apr 2, 2016
    Messages:
    8,447
    Likes Received:
    3,268
    I would use something more reliable like Fidelity.
     
    Rustic1 and NGrossi like this.
  5. NGrossi

    NGrossi New Member

    Joined:
    Jan 28, 2021
    Messages:
    5
    Likes Received:
    0
    Thanks :) for the advice I appreaciate it as Im new to the scene and need to learn my risk tolerance :)
     
  6. spindr0

    spindr0 Active Member

    Joined:
    Mar 4, 2021
    Messages:
    103
    Likes Received:
    85
    Go with a traditional no commission broker (Fidelity, Schwab, Ameritrade, E*Trade, etc.). Robinhood is a second rate mickey Mouse operation.
     
    Rustic1 likes this.
  7. Rustic1

    Rustic1 Well-Known Member

    Joined:
    Jan 3, 2021
    Messages:
    1,143
    Likes Received:
    445
    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.
     
  8. joantucker

    joantucker New Member

    Joined:
    Sep 14, 2021
    Messages:
    1
    Likes Received:
    0
    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.
     
    #8 joantucker, Sep 14, 2021
    Last edited: Sep 18, 2021

Share This Page