How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I have a brokerage account which I open 2 years ago with

Customer Question

I have a brokerage account which I open 2 years ago with $175,000. It took a hit end of 2015 and is currently valued around $160,000. I want to sell $60,000 of it for needed funds. What are the tax implications?
Submitted: 4 months ago.
Category: Tax
Expert:  Lev replied 4 months ago.

Hi and welcome to our site.

You might be aware that if you hold shares in your brokerage account - the value of shares might go up and down - but that will NOT affect your tax liability.

That is unrealized gain or loss.

You will realize the gain or loss when shares are sold.

Expert:  Lev replied 4 months ago.

If you want to sell SOME shares - you will need to know the basis of these shares - and will calculate the gain or loss as

(selling price) MINUS (basis)

The administrator of your account will issue a form 1099B - reporting your sale transaction - and you will use that information on your tax return.

If you will realize a loss - that will be capital loss - and may be fully used to offset other capital gains - but if you have net capital loss - only up top $3000 will be used against other taxable income - and the rest will be carried over to following years.

Does that answer you question?