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Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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If someone sells stocks and uses the proceeds to buy new stocks

Resolved Question:

If someone sells stocks and uses the proceeds to buy new stocks in the same year are those proceeds taxable?
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.

The sale of stock must be reported even though the proceeds are reinvested in new stocks. The sale would be reported on a Schedule D. If there is a long term (stock was owned more than 1 year) capital gain on the stocks, then the tax rate on the gain is either 0% or 15% (or a blended rate) depending on the taxpayer's marginal tax bracket.








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