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If I make money investing in stocks with after tax income(not in IRA) do I pay income tax or capital gains?
If you max out a Roth, ESA, and the 401k match, what’s next? I want to start investing in stocks and mutual funds above these. Was wondering what kind of taxes I will owe on the money I make on these, capital gain or regular income?
Home | Investing | Blog article: If I make money investing in stocks with after tax income(not in IRA) do I pay income tax or capital gains?
longball954 9:02 am on April 6, 2010
Any gains you have from investing in stocks/mutual funds that were made with after tax money would be subject to capital gains tax. If you hold the stocks/mutual funds for at least 1 year, they will receive favorable tax treatment and be classified as long-term capital gains.
Currently, the maximum amount of tax owed on LT Capital Gains is 15%.
ST capital gains are taxed at regular income levels.
Judy 9:02 am on April 6, 2010
capital gains rather than being taxed as ordinary income if you hold them over a year so it’s long term. Short term capital gains are taxed at your ordinary income rate.
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