How do you calculate tax on income of shares?

Answer 1

To calculate the sale of stock shares, you must first enter the date and price of the shares at the date of purchase, this is your basis. This amount is subtracted from the sell price to obtain your net gain or loss. Ex: 200 shares purchased on 6-16-2000 for $100 per share = $20,000 basis 200 shares sold on 6-15-2008 for $250 per share = $50,000 Stock shares held for less than 12 months is considered short term; more than a 12 month period is considered long term. Short term capital gains are taxed at a higher rate. To determine your capital gain on the above example: $50,000 less $20,000 = $30,000 taxable capital gain for the year of the sell. If you have a loss, remember that you can only deduct $3,000 per year until the full amount of the loss is depleted. http://taxresolutionaries.blogspot.com