How do taxes work on Robinhood ?
Basically I want to know if I sell and keep my money on buying power for a year will I be able to avoid long term taxes or is it each time I sell and make a profit I have to pay taxes on the profit very confused on how it works
- Ron AkiaLv 72 months ago
Robinhood will send you a 1099 after the first of the year that will detail each and every purchase you've made. The IRS also will receive a copy. You'll be responsible for paying income tax on each and every gain made in the year after deducting the losses. You cannot defer income taxes.
- SlickterpLv 72 months ago
The taxes are due based on the sale, not based on when you actually use the money. Long term taxes are CHEAPER than short term taxes. When investing the long term taxes are the ones you WANT.
- StephenWeinsteinLv 72 months ago
You have to pay taxes every year that you sell and make a profit. The only way to avoid taxes on something that went up in value is to hold onto that stock and not sell or trade it.
- Anonymous2 months ago
A single stock held for a year or longer gives you long term capital gains rates. Buying something else or not is totally unrelated to realized gains short or long term.
Lucky for you, you will probably not have to worry about gains. Most robinhooders lose money.
If you want to make money get the hell out of there and buy a low fee s&p 500 index fund. Vanguard or Fidelity.
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- JudyLv 72 months ago
each time you sell, you must report it.