Would IRS tax you any different if you hold a stock for a short time than when you hold it long term?

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  • 2 months ago

    Yes, long term (over 1 year) is taxed at flat 15%.  Short term is taxed as regular income.

  • Anonymous
    2 months ago

    Yes, best to hold.  I own one with a cost basis of about $5. Its $23 now. And pays 56 cents a year in dividends.  Another I paid $9.50 and its $41.95 and pays $1.20 a year in dividends.

    The first one I probably owned from before you were born.

  • 2 months ago

    Only gains are taxed.  Gains on investments held less than a year are taxed as ordinary income, at your marginal tax rate. Long term capital gains treatment, which is generally lower, applies on assets held one year or longer.

    Depending on your AGI (adjusted gross income) on the 1040, your capital gains tax rate is 0%, 15% or 20%.

  • 2 months ago

    When you own a stock, you are going to pay extra tax because of dividends, if it pays any. When you sell that stock, you'll pay capital gains. That doesn't matter if you own the stock for one day or one hundred days. 

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  • 2 months ago

    Yes it would.  If you have a gain and are close to holding it for a year, hang on.

  • Anonymous
    2 months ago

    yes, higher taxes on short term holding for a stock.

  • 2 months ago

    Yes. Long term gains are usually taxed at the same low rates as qualified dividends.  Short term gains are taxed at the same rates as ordinary income.

  • 2 months ago

    Tax LAW, not the IRS, treats gains on assets held less than a year as regular income. Gains on assets held more than a year are taxed at a lower capital gains rate than regular income.

  • Judy
    Lv 7
    2 months ago

    yes.  Gain on stock held for over a year is generally taxed les that on stock held a year or less.

  • 2 months ago

    1 year or shorter = Short Term Capital Gains (ordinary rates)

    Over 1 year = Long Term Capital Gains (lower capital gains rates)

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