STOCK TRADE
STOCK TRADE
Do I have to pay tax on every stock trade can I?
I have a scottrade account, do I have to pay tax on each trade or just on my profit?
You must pay tax on any profit you make when you buy and sell shares. The tax rate you pay on gains depends on how long you hold the investment. If more than one year, you pay for long-term capital gains rate, and if less than one year you add it to your regular income and your tax rate depends on bracket You. For 2007, the long-term capital gains rates are 15% income tax bracket or below your pay 5% income tax bracket or above 25% you pay 15%
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