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Started By
Message
Need tax advice on a brokerage account
Posted on 2/27/20 at 8:25 pm
Posted on 2/27/20 at 8:25 pm
Recently opened up my first brokerage account with Fidelity. Plan is to drop $1,000 in FSKAX on the 15th of every month. Not touching any of the money for 7-10 years.
How are taxes going to work with this? If I never pull out any money is it still considered capital gains ? And what about in the event that I lose money the first year or so?
TIA
How are taxes going to work with this? If I never pull out any money is it still considered capital gains ? And what about in the event that I lose money the first year or so?
TIA
3
Posted on 2/27/20 at 8:38 pm to HarveyBanger
If you hold it less than a year, earnings taxed at your normal tax rate.
If longer than a year, 20% as a long term cap gain.
If not in a retirement vehicle, you will pay taxes when you sell, regardless of time, is cap gains laws are still in place.
FYI, you will have to pay a dividend tax each year, if any dividends are paid out that year.
If longer than a year, 20% as a long term cap gain.
If not in a retirement vehicle, you will pay taxes when you sell, regardless of time, is cap gains laws are still in place.
FYI, you will have to pay a dividend tax each year, if any dividends are paid out that year.
Posted on 2/27/20 at 8:38 pm to HarveyBanger
If you don’t sell it would be rare to have any significant capital gains unless the fund itself delivers them from internal selling.
LINK
^ scroll down to tax efficiency
You would however receive a 1099 for regular dividend payments. From a tax and cost perspective this is an efficient vehicle if you just want US index exposure.
LINK
^ scroll down to tax efficiency
You would however receive a 1099 for regular dividend payments. From a tax and cost perspective this is an efficient vehicle if you just want US index exposure.
Posted on 2/27/20 at 8:44 pm to hottub
quote:I mean the long-term capital gains rate even for a single-filer is 15% until income is over $434,550. I doubt a person investing $1,000 a month is making enough to get taxed at 20%.
If longer than a year, 20% as a long term cap gain.
Posted on 2/27/20 at 8:46 pm to hottub
quote:
If not in a retirement vehicle, you will pay taxes when you sell, regardless of time, is cap gains laws are still in place.
Ok. But plan is not to sell. Buy and hold for 7-10 years
Posted on 2/27/20 at 8:51 pm to HarveyBanger
quote:
Ok. But plan is not to sell. Buy and hold for 7-10 years
You’ll pay taxes when you sell.
You owe no taxes for the purchase of a stock
Posted on 2/28/20 at 9:04 am to HarveyBanger
If you never sell, you will never incur a capital gain / loss.
Unrealized losses / gains (fluctuations of value) are not taxable... at least not yet.
However, that fund may throw off dividends and capital gain distributions, which would be taxable each year.
Unrealized losses / gains (fluctuations of value) are not taxable... at least not yet.
However, that fund may throw off dividends and capital gain distributions, which would be taxable each year.
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