Question on selling stocks

[SandEagle]

I recently purchased stock in 5 different companies.

My total investment was $3500. Let's say that I am down to $2000 market value on all holdings and decide to sell it all. Will I get hit with any tax penalties if 1 of those 5 stocks made me a few hundred dollars, even though the other 4 took a loss? Do they look at this as a total or separately?

I haven't filed taxes before on this since this was my first attempt at investing.

 

[bignateyk]

I really have no clue, but I think that you will owe taxes on the gains, but you can write off the losses, so it would even out (or even work out in your favor) in the end...

edit: I think it is just one lump thing too.. so it would just be the net result of your investments?

 

[SandEagle]

Originally posted by: bignateyk
I really have no clue, but I think that you will owe taxes on the gains, but you can write off the losses, so it would even out (or even work out in your favor) in the end...

edit: I think it is just one lump thing too.. so it would just be the net result of your investments?

thanks for the info. maybe i'll look for a copy of my old turbotax to see how they handle this

 

[lizardboy]

IIRC - capital gains minus capital losses (in one year) = taxable capital gains. Since you'll have negative capital gains, you can carryover the excess loss in years forward, applying up to $3K each year regardless of whether or not you actually have capital losses in those years.

 

[Delita]

Not unless you realize your gain/loss.

Also if you do realize your losses you can only write off up to 3000 (I think thats the right amount but not positive) per year.

 

[TridenT]

I'd just sell the one that is making you money... :-/ The rest may go up... Idk what you bought.