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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29941
Experience:  Taxes, Immigration, Labor Relations
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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: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year 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 1 year 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?