Question about taxes and the stock market

[Specop 007]

Quick tax question here
When you buy and sell stocks, do you pay taxes on the amount of the transaction or on the gain only?
Such that if you bought 10 shares for 10 bucks, then later (under 1 year) sold 10 shares for 11 bucks how much would you have to pay taxes on? Just the 10 dollars in profit right?

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Sticky Tax Thread

 

[richardycc]

$10 less the selling and buying commissions.

 

[dman]

Then keep in mind that the tax rate is different depending how long you hold the stock for, I think > 18months avoids the capital gains tax. Doesn't change how you calculate it though.

 

[b0mbrman]

Originally posted by: Specop 007
Spec is tax illiterate

Looks like you're normal illiterate too 😛

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[desk]

Originally posted by: dman
Then keep in mind that the tax rate is different depending how long you hold the stock for, I think > 18months avoids the capital gains tax. Doesn't change how you calculate it though.

long term > one year = 15% tax on profits
short term <= one year = taxed at same rate as your wages