I am planning to move money from my individual brokerage account to my Roth IRA. A lot of the stock I own was originally purchased on Robinhood, then transferred to Vanguard where it was held and added to, then finally transferred to Fidelity a few months later. The cost basis for the stock purchased in Robinhood never transferred over.
When I sell the stock that I manually entered cost basis info for, will the original price be used to calculate the amount of tax that I will owe? Or will I be taxed as if the sales was 100% profit unless I take some extra steps when filing my taxes?
ALSO: does Fidelity automatically withhold taxes on sales?
I am trying to calculate my total cost for a NFT (non fungible token). You can think of it as a digital painting for those unfamiliar with crypto or the block chain. In order to purchase it must, I first convert dollars to crypto and then i can purchase the NFT. Crypto can be very volatile: for example if i spend 100 dollars for 1 crypto token to buy the NFT, but before i buy the NFT my token appreciates to 150 dollars though the cost in tokens remains the same. Would i say my book cost for the NFT is 100 dollars or 150 dollars. I also am confused because i have been slowly accumulating coins over a long time so i have varied costs. would that mean i take the average cost for all my crypto tokens or just the ones i bought specifically for the NFT. I just wanna be prepared and have my books in order prior to tax season as i am very young and do not have much experience. Thanks for any help or answers!
They know it's gonna happen and they want their tax tendies.
I have seen several comments, conversations, and general concern by the few over the impact of transferring to Computershare and the implications this will have on capital gains tax or maintaining cost basis and transaction history - with some worry over this action causing a ‘reset’ of the clock/book value.
This is not true
If you do an in-kind transfer, meaning you transfer your stocks from one brokerage to another brokerage or in this scenario a transfer agent, you will not incur taxes or a new tax window because the transfer isn’t considered a taxable event.
It is a transfer, not a transaction
This is so even if your broker then must go and source the shares in the case of a synthetic holding.
The event DOES become taxable when liquidating the assets held at your current brokerage and you decide to transfer via a selling and repurchasing. This of course is why the pressure should be maintained on your current brokerage to facilitate your DRS request. [There are plenty of articles on this for numerous brokerages on this sub]
It is also worth noting that if your securities are held in a non-taxable account (like a retirement account), you won’t incur capital gains taxes when you liquidate and transfer to a new brokerage. This includes many types of IRAs like traditional, Roth, SEP, etc.
Here is a great list of IRA types and their relative rules: IRA's
PLUS, in most cases you don’t have to liquidate your retirement account if you’d like to transfer. You can transfer your IRA like you would a taxable brokerage account.
Transaction History & Cost basis
Cost basis is the original price that an asset was acquired, for tax purposes, transaction history is as you might guess – the log of when your shares were purchased.
For those who have purchased many shares in numerous share lots [as I am sure many of us have] a law was passed in 2011 which requires brokers/agents to send your transaction history and maintain your cost basis to your new broker/agent when you transfer.
This becomes important when you pay taxes on the gains of any sales you make in your portfolio
It is recommended and very smart to get a copy of your cost basis (the original value of your investment) from your existing brokerage for your records - also its worth retrieving and recording the transaction history from your broker and making a record of all the securities
... keep reading on reddit ➡I am new to crypto entirely, but I like the token #safemoon.
Bought in a little over $1k USD worth, and now I will hodl for the long term, but I still need to do more research into investing in general.
From what I am reading online if I made $1M profit, 43% of that is taxed which is roughly $430k leaving that gain at around $570k. Am I correct or did I just read the legislation incorrectly?
If I am correct, what are you astronauts planning to do as far as maximizing profit? Index funds, hodl for emergencies???
May throw in some more $$$ to hodl for the moon while we are early for take-off.
Cheers ladies, and gents
My understanding is that after living in Japan for 5 years, I’ll be considered a permanent resident for tax purposes, which means my worldwide income will be subject to Japanese taxation.
I’m trying to figure out how this applies to capital gains and calculating cost basis.
Let’s say I bought some shares for $100 on January 1, 2019 while living outside Japan. On January 1, 2020, I moved to Japan, and those shares were worth $200. On January 1, 2025, I then sell my shares for $300.
Would I be taxed for the full $200 gain since the date of purchase, or would I be taxed for the $100 gain since the date I moved to Japan?
If it’s the prior, do people tend to sell their holdings right before they become permanent tax residents only to repurchase them later? Are there wash sale rules involved?
I’d love to find NTA literature about this, but my english and japanese search skills are lacking. If anybody has pointers to resources, I’d greatly appreciate it.
I'm well aware of the various tax advantaged accounts (401ks, ROTH IRAs, ROTH 401ks, traditional IRAs, etc) but all of which have withdraw limits set by age. Assuming one truly did want to FIRE and start living off their investments by say 28 or 30 years old... is the plan to eat the cost of ~15% long term capital gains tax when you begin to withdraw? 15% seems like a big chunk especially if the plan is to live off of the 4% rule. Am I missing something???
It’s tempting to sell, because you’re scared after the Trueforma product launch the company won’t continue to be successful. They just made a bunch of money after an additional IPO where Zomedica is getting money for what they are actually worth, and will put that money into future products. Hopefully trueforma is just the start. Animals need to be tested for more than just adrenal function.
If you would rather pay 15% long term capital gains tax vs 25-35% then hold this stock.
I have a question that has me super concerned and keeps me up at night. I live in the USA and so can i use a crypto that i purchased after a sale as part of the cost basis for capital gains/loss calculations as long as it was in the same year?
Example: Jan 2021 - buy 1 ether at $1 Feb 2021 - sell 1 ether at $3000 March 2021 - buy 1 ether at $4000
For capital gains/loss tax purposes, can i use the march buy as the cost basis for the feb sale even though it occurred after the sale? e.g. i claim a capital loss of $1k in 2021 (buy $4k sell $3k)?
any help would be super appreciated!!!
Much like a company car as an expense, I'm wondering if buying a laptop would offset some CGT as an expense to be able to trade in the first place. Or is there no allowable expenses for individuals?
Pretty much title.
He works at Shopify and has a ton of Shopify stock as part of his compensation over the years.
The other day he went on a 20 minute diatribe about how the liberal government is going to just yoink 50% of his capital gains. When I gave a puzzled look and said "no... 50% of your capital gains are taxable, not taken from you" he insisted he was right in his particular case.
I'm almost positive this is a WILD misunderstanding on his end, but just in case, before I berate him for his idiocy, is there any possible situation where long-term capital gains would be taxed at a rate of 50%?
My goodness apes and apettes.
I reached 83% some months ago as I got in super early as an XXXX holder.
I've added to my position 3 times since then. The last time was exactly one year ago today.
99% DRSd.
I want to thank crime and a completely fraudulent system for allowing me to get to this point. There was a time I thought the US government would step in and put and end to the nonsense so they could cash out with us apes.
Instead they chose to support the financial terrorists at every level. I couldn't be more pleased as I will have more cash on hand to support my community directly.
Many of you will have you long positions eligible for long term capital gains and I will be here waiting to celebrate with you.
DRS. BUY. HOLD. HODL. REPEAT.
You've already won.
So as i understand, if you rent a small portion like a basement, not claim CCA, make no changes, you dont pay capital gains tax and it remains a PRE (principal residence tax exemption).
However, the real definition for renting the basement and keeping PRE stems from this statement:
"the income-producing use is ancillary to the main use of the property as a residence;" from the CRA.
ancillary definition: " providing necessary support to the primary activities or operation of an organization, institution, industry, or system".
So if my costs, including mortgage payment, bills, property taxes are 4k, but i rent the larger portion of the house for 3k a month (eg. rent 2 upper floors, and live in the basement myself), is this not still considered ancillary? I am still paying out of pocket to cover the running costs. It's providing support to the operation of the house. Im still not profiting monthly.
so what's your take on that? ancillary does not mean a "small portion of your house" but rather "providing necessary support to the primary activities or operation". So what if you rent the majority of your house and you livve inside your basement, you're still supporting the primary operation of living in your house. At least until you become cash flow positive.
Can someone shed some light on this VERY grey area?
2.59 It is the CRA’s practice not to apply the deemed disposition rule, but rather to consider that the entire property retains its nature as a principal residence, where all of the following conditions are met:
a) the income-producing use is ancillary to the main use of the property as a residence;
b) there is no structural change to the property; and
c) no CCA is claimed on the property
Hi, I’m looking for some low cost ETFs with no dividend payment and taxed as capital income based on lagerbeskatningsprincip for my children. As I understand children don’t pay tax on capital income, hence why. Prefer several ETFs with different regions instead of MSCI World. Any suggestion is appreciated!
I have seen several comments, conversations, and general concern by the few over the impact of transferring to Computershare and the implications this will have on capital gains tax or maintaining cost basis and transaction history - with some worry over this action causing a ‘reset’ of the clock/book value.
This is not true
If you do an in-kind transfer, meaning you transfer your stocks from one brokerage to another brokerage or in this scenario a transfer agent, you will not incur taxes or a new tax window because the transfer isn’t considered a taxable event.
It is a transfer, not a transaction
This is so even if your broker then must go and source the shares in the case of a synthetic holding.
The event DOES become taxable when liquidating the assets held at your current brokerage and you decide to transfer via a selling and repurchasing. This of course is why the pressure should be maintained on your current brokerage to facilitate your DRS request. [There are plenty of articles on this for numerous brokerages on this sub]
It is also worth noting that if your securities are held in a non-taxable account (like a retirement account), you won’t incur capital gains taxes when you liquidate and transfer to a new brokerage. This includes many types of IRAs like traditional, Roth, SEP, etc.
Here is a great list of IRA types and their relative rules: IRA's
PLUS, in most cases you don’t have to liquidate your retirement account if you’d like to transfer. You can transfer your IRA like you would a taxable brokerage account.
Transaction History & Cost basis
Cost basis is the original price that an asset was acquired, for tax purposes, transaction history is as you might guess – the log of when your shares were purchased.
For those who have purchased many shares in numerous share lots [as I am sure many of us have] a law was passed in 2011 which requires brokers/agents to send your transaction history and maintain your cost basis to your new broker/agent when you transfer.
This becomes important when you pay taxes on the gains of any sales you make in your portfolio
It is recommended and very smart to get a copy of your cost basis (the original value of your investment) from your existing brokerage for your records - also its worth retrieving and recording the transaction history from your broker and making a record of all the securities you own before
... keep reading on reddit ➡