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Overnight Open Thread

285
Buck9/19/2011 11:12:56 am PDT

re: #282 BigPapa

A stock is an investment. Changes in the investment are realized when the investment is sold as far as the IRS is concerned.

This IRS doesn’t not care if the value changed in the interim. If you have a stock that dropped 10% in value, you did not ‘lose’ 10% of your money. The loss is only realized if you then sell the stock. Then the IRS considers this a loss and is calculated into the tax equation.

If you sold the stock and made a profit, then your are taxed on the profit.

OK, you are missing the key part of this discussion, in the meanwhile is dividends “profit”?