Stock Market Question

[the_clockwork]

Ok if I were to sell today I would nearly double the money I put into the stock market a little less than 2 years ago. One company that I own stock in recently split and the stock sky rocketed. I want to sell and get out of it because I'm not one to risk something that already has doubled.

If I were to sell and take the gain do I have to declare it as a capital gain?

 

[SLAYER69!]

Yes, anytime you sell stock and take a profit it is taxable. Only time its not is if it is part of an IRA or 401K and you don't cash the money out.

 

[ole farte']

yes but since you have owned it over a year you will pay long term cap gains at a lower rate than you would have if you'd owned it less than a year. of course there is a lot of variables on what the rate will be depending on your total income, wealth, etc.

 

[the_clockwork]

yes but since you have owned it over a year you will pay long term cap gains at a lower rate than you would have if you'd owned it less than a year. of course there is a lot of variables on what the rate will be depending on your total income, wealth, etc.

so profitting 2800 isn't going to end up costing me much even if I'm in an upper tax bracket?

 

[SLAYER69!]

See this:

http://taxes.about.com/od/capitalgains/a/CapitalGainsTax_4.htm