How do you avoid paying heavy taxes on stock gains??

[Eos]

Here's a concept:

Pay taxes on money you've earned.

 

[Dunbar]

Contrary to popular belief there aren't really any ways left for individuals to avoid paying tax (except fraud). You have to pay taxes on income, but be happy you made money. If you sold the stock in 2007 than you won't owe tax on it until next year. Reinvest the money and try to make more profit.

 

[Rudee]

In Canada if you invest in Canadian companies you get a capital gains exemption. i.e. if I make a $5000 capital gain on a stock, only half of that is taxable.

 

[Ameesh]

this thread is weeks too late

 

[AgaBoogaBoo]

Originally posted by: eos
Here's a concept:

Pay taxes on money you've earned.

I don't think the OP is saying against that... you can find ways to minimize it and maybe defer it to a later time, nothing wrong with things like that.

 

[Vic]

Originally posted by: Accipiter22

Originally posted by: Vic
You make a like-kind reinvestment.

so if I reinvest it into other stocks I won't have to pay on it?

Exactly.

 

[Accipiter22]

Originally posted by: binister

Originally posted by: Accipiter22

Originally posted by: KoolAidKid

Originally posted by: Accipiter22

Originally posted by: ElFenix
if there are some losses that you have to take, those losses would offset the gains.

also, if you've held it long enough it becomes long term cap gains with favorable tax rates.

don't realize means don't sell the asset.

you could also go to a US embassy and renounce your citizenship.

unfortunately I already sold them....So I guess it's off to the embassy?

So if I'm understanding correctly: I made 7,000 now if I purposely invest in a stock that tanks, say even by 1000, I'd still be up 6,000 and could count those losses against taxes I would owe?

You are correct in that your losses would reduce your taxable gains by $1k, but no one in their right mind would deliberately take a $1k loss to avoid $350 in taxes.

true

How long did you hold the stocks before you sold?

couple days

 

[Accipiter22]

Originally posted by: AgaBoogaBoo

Originally posted by: eos
Here's a concept:

Pay taxes on money you've earned.

I don't think the OP is saying against that... you can find ways to minimize it and maybe defer it to a later time, nothing wrong with things like that.

exactly. I'm not against it in the least, I don't mind paying them, how else does the country run? I just don't want to lose like 50% of what I made or something.

Originally posted by: Vic

Originally posted by: Accipiter22

Originally posted by: Vic
You make a like-kind reinvestment.

so if I reinvest it into other stocks I won't have to pay on it?

Exactly.

yah, I'm pretty much not stopping, just wondering if there was any way to minimize the tax blow.