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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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If I sell a stock after owning it for one year ( October 1,

Resolved Question:

If I sell a stock after owning it for one year ( October 1, 2010 - October 1, 2011) and I sell it. If I paid $2 and sell it for $3 after one year, how much taxes will I have to pay on it.
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.

RD :

You will owe tax on the capital gain which is $1 ($3-$2).

RD :

Since you held the asset for more than a year the gain is long term capital gain.

RD :

Long term capital gain is taxed upto a maximum tax rate of 15%.

RD :

For 2011 and 2012, long-term capital gains (assets held for more than one year) are taxed at a maximum tax rate of 15% (unless you are selling collectibles or have depreciation recapture on real estate, then the maximum rate is 28% and 25% respectively).

RD :

So, your other income is low and you fall in 10-15% tax bracket than you will pay 0% tax on long term capital gain.

RD :

But if your income is high and you are in higher tax bracket than you pay 15% tax on gain.

Customer:

will I have to pay maryland state taxes on top of the 15%?

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