Thread: capital gains taxes on stock sales?

Im new to stocks and trying to understand something. Lets say I own 1000 shares of stock each in two different companies and both stocks are valued at 0/share. If one company gains 50% (for a profit of ,000) and the other company im invested in loses 50% (for a loss of ,000) and I sell both, do i still owe capital gains taxes on the stock I profited on or does the capital loss from the second stock cancel out the gains for the year.

The loss would cancel out the gain. No tax due.

Capital Gains is calculated based on the net total of your sales. You pay capital gains when you file your income tax, and the amounts are pulled from your annual statement.

They cancel out.

Only if you sell both in the same year, will you not have to pay capital gains. If you sell the profitable one in 2008 and the unprofitable on in 2009, you'll have to pay capital gains tax in 2008.

How are you making any money in the stock market anyway? Once Obama becomes president, don't worry about capital gains because your money will totally belong to the feds.

I would think it is net gains (profits minus losses). It is in UK anyway. Also you can carry losses forward.

I would think it is net gains (profits minus losses). It is in UK anyway. Also you can carry losses forward.